by Bill McBride on 4/16/2009 10:25:00 PM
Thursday, April 16, 2009
From Bloomberg: U.S. Aims to Release Bank Stress-Test Results May 4 (ht jb)
The Federal Reserve and other regulators aim to release the results of stress tests on 19 of the biggest U.S. banks on May 4, a central bank official said.A potential capital shortage is a reportable material event and therefore all results must be released for banks requiring additional investment.
Regulators also plan to publish a paper on their methods on April 24, according to the official. The May 4 results will include any plans for boosting capital to weather a deeper economic downturn, the person said.
Procedures for releasing information on specific firms, including whether the banks themselves or the supervisors will release the results, are still under discussion. The Securities and Exchange Commission, which sets rules for what publicly traded companies must disclose to investors about their financial condition, is involved in the talks, the person said.
The goal of publishing the stress-test methods is to bolster credibility of the assessments, which will expose weaker banks and may boost confidence in stronger ones.
May 4th is a Monday ... I wonder if the results will be released pre-market (or even leaked Sunday night).
Posted by Bill McBride on 4/16/2009 10:25:00 PM