Banks were given stress tests by the Treasury and the Fed (read as ex-officials on sabbatical from Investment Banks working at the Fed and Treasury). These tests were performed and the results were given to the Banks a week or two ago. The public, who own stock in these firms will be told the results about two weeks after the institutions. This gave them time to renegotiate their test results, do a little insider trading and maybe sell a few bond issues to bolster their outlook. This is after allowing these institutions to not have to Mark to Market and giving them Tarp money and having the Fed underwrite their bad stuff. The Government (read investment bankers on Sabbatical working for the government) want their bonuses back and the only way to do this is to not put them in the hands of the receivers (bondholders) and to pass the cost on to the taxpayer. This is being done in the name of "too big to fail" and not "too big to sell to the bondholders". This is all eyewash for the public and our Presscorp needs to engage, but they too are afraid of the truth. And the truth is, our financial institutions screwed up, big time, very big time and either they need to go on the block or the taxpayer for the next 30 years have to go on the block. The bankers are picking the taxpayer.
Reply With Quote
Bookmarks