According to anonymous Treasury officials, all 19 banks “passed” the stress test — even though some will need additional capital.
But the Fed wants to keep up the charade that the stress tests are a big deal, and it doesn’t want anyone crowing about how their bank did. Ken Lewis shouldn’t say, for example, that he did his patriotic duty by taking the stress test, and that Bank of America passed with flying colours.
Because then, you see, people might think it’s really weird if John Mack didn’t say the same thing on his earnings call, and then you’re in a big mess.
So, once again, the country is just supposed to take the Administration’s word for it. So much for transparency and accountability.