Posted on Tuesday, April 21, 2009
With stress test outcomes pending, the question on everyone's mind (OK maybe not everyone) is whcih bankls will pass or fail and how exactly again are the Feds grading this thing. The later question is looking more and mroe like a moving target with synics wondering if the criteria maybe wont be customer tailored based on the realities and what the Feds think the grading curve will need to look like in order to restore consumer (and thal all important global investor) confidence.
So far we're hearing that "overall health of the financial system" and the "flow of credit" will be key in decisding whether or not banks that borrowed will be allowed to repay. Funny, some who borrowed want to repay and may nit be able to; Goldman Sachs, JP Morgan Chase among them. No doubt the result of necessary evil strings and perhaps of some no really wanting the money in the first place but taking it as a favor to the Feds to cover for others who really did need it. The administrations position of course is that they dont want the money back if repaying it will only put the banks in the poor condition they started in. Distruct of the Feds by the banks persists - maybe some consistency and reliability fro our government "helpers" would put some banking execs minds at ease?
As individual American's financial recovery is tied to the financial mess, so now is US recovery tied to the global mess meaning the Feds are working hard to influence other nations now, even as we still cant quite get it right here at home.