Saturday, May 9, 2009

Nobody Does It Better (Lies)

You know those stress tests we were just joshin ya! The Banks did not think they should be made to provide adequate capitol and since the Banks pay us (the politicians) so well we have to do what is best for them, why do you think we put Government Sachs golden boy Tax Cheat Timmy in charge in the first place?

We know you were not too amused when we flew the White House Terror plane over New York but you have to try to keep your sense of humor.  And hey we provided a fall guy for that one so we should be good to go. 

Psst... Fed Not Actually Going To Make Banks Raise That Stress-Test Capital (BAC)


US banks have been given government assurances they will be allowed to raise less than the $74.6bn in equity mandated by stress tests if earnings over the next six months outstrip regulators’ forecasts, bankers said.

The agreement, which was not mentioned when the government revealed the results on Thursday, means some banks may not have to raise as much equity through share issues and asset sales as the market is expecting. It could also increase the incentive for banks to book profits in the next two quarters.

The banks have 28 days to announce their capital-raising plans and until November 9 to implement them. Wells Fargo and other banks that will have to raise capital told the Financial Times that if operating profits were greater than the government’s stress-case forecast for the second and third quarter, they would receive credit for the difference. That, in turn, would reduce the need to raise fresh equity from other sources.

Keep reading >

Thank goodness we did away with mark-to-market accounting.  Now the banks can just "earn" all the money they're supposed to raise! Try to keep a sense of Humor that is all you will have left when The Resident and his Government Sachs boyz are done Looting you.


For the first six months of this year, as a presidential candidate, Senator Clinton has received $493,000 from commercial banks. Senator Barack Obama of Illinois, a rival for the Democratic nomination, has received more ($607,000) and is the top recipient of contributions from banks among both Democrats and Republicans.

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