The big winner from the just-released stress tests: Tim Geithner. No doubt.
We’ve given the Treasury Secretary a fair amount of flack, and at one point we suggested they just pull the plug on the whole thing. A few weeks ago it was looking like a total fiasco. Even last week when they said they’d delay results, it appeared as if the whole project may go off the rails.
We won’t know for a while how correct the estimates to be. We still think they were likely to have been way too lenient in terms of unemployment and economic projections. But that’s not the point. Geithner managed to get it out AND get a major bank rally going during the leaks period. Every time a bank was revealed to have been deficient, they went up.
If only due to the PR angle, this is a win for Geithner.