Wall Street To Lobby Geithner To Relax "Stress Test"

[blueclown]

Source: Huffington Post

Wall Street is to lobby the Obama administration to relax its plans for stringent reviews of banks' financial health and capital injections that could leave the government as a large shareholder in many of those institutions.

People close to the situation say financial groups were frustrated by the administration's decision not to hold detailed talks with the industry before last week's release of its $2,000bn financial rescue plan.

Administration officials said the announcement was always intended to be a framework rather than a final plan and stressed that input would be sought from industry “stakeholders” as details were fleshed out. “We’re going to get opinions from across the industry ... to help shape the final plan,” said one official.




Read more: http://www.huffingtonpost.com/2009/02/15/wall-street-to-lobby-geit_n_167135.html

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This is the elephant in the room. There are countless banks that are insolvent right now, and Wall Street doesn't want anybody to know about them. Let's hope Geithner doesn't buckle under the pressure and looks really deep into these bank's balance sheets.

[marketcrazy1]

1. yes, and the opinions from wall street

will be, BAIL US OUT for the "good" of the country!!! our losses are so big only the taxpayers can afford to take them!!

[Beetwasher]

2. Ok, You Don't Have To Wear Ties

And feel free to get drunk while you're being audited.

[SOS]

3. Economist Simon Johnson said

that the stress test was the only thing in the Geithner plan that had real merit.
Figures the Wall Street gangs would pick that one element to fight.

If Johnson is for it and Wall Street is against it, then it's the right thing to do.

[Romulox]

4. Contrast this to the way the Obama admin is treating the car companies. nt

[jwirr]

5. Wall Street is like a baby that throws a tantrum every time it is told no. nt

[endarkenment]

6. And again they just want money with no accountability and no oversight.

This is stupid. Corrupt. Arrogant. Stupid. Bullshit.

[chill_wind]

13. Agree-- ALL of that. n/t

[No Elephants]

17. More money, no accountabily , no oversight and no end in sight. Endless money. I want that, too!

[Kolesar]

7. Presumably the most-insolvent banks won't get any aid?

"Several banks want the government to clarify that its plans for a “stress test” of companies’ ability to survive a sharp deterioration in the economy and financial markets would not result in a “pass or fail” grade.

They argue that any sense that banks have inadequate resources to stave off a worsening climate would destroy investors’ and savers’ confidence.
"

WTF

[natrat]

8. wtf? as if any of those scum have any value beyond enriching themselves-fuck them

[mackerel]

9. Wallstreet Oligarchy's

There's a really good interview with Bill Moyer's and
Simon Johnson that sums it all up.

http://www.pbs.org/moyers/journal/02132009/watch.html

[mackerel]

10. Oh and what ever you do don't dare call it a bonus.

Via Sam Stein:

The soon-to-be-merged financial giants -- Morgan Stanley and Citigroup's Smith Barney -- announced the payments during an internal conference call last week, but warned advisers against describing them in terms that would cause PR headaches.

"There will be a retention award. Please do not call it a bonus," said James Gorman, co-president of Morgan Stanley. "It is not a bonus. It is an award. And it recognizes the importance of keeping our team in place as we go through this integration."








http://christyhardinsmith.firedoglake.com/2009/02/11/none-dare-call-it-bonus/

[NeoConsSuck]

11. Thanks for the link mackerel

I've forwarded it to my associates at work.

One of the associates feels no money should have been spent on the stimulus, it should have all gone to help the banks. BTW, he is not a progressive :)

[Buns_of_Fire]

12. Damn. Wall Street's frustrated and I'm all out of itty-bitty violins. n/t

[Joe Chi Minh]

14. Alas, too many banks have already been stress-tested to the point of rupture

by their CEO and board. But at least we learnt what they're good at. It's called "bankruptcy" or "bench-breaking".

[Skink]

15. Do we really want to find out how bad it is?

[Telly Savalas]

16. The banks' arguments are so stupid they pretty much refute themselves.

Transparency is bad.

It's not fair that we can't write the legislation which regulates our industry.

We need a bailout because we're in financial trouble, but stress tests are bad because they might let people know that we're in financial trouble.

Taxpayers should shoulder the financial burden of our mistakes, but it's wrong to issue them preferred stock. This is supposed to be a handout, not an investment.

Moral hazard is the bedrock of a stable financial system.

I wish the "brain drain" argument against compensation restrictions was true. Our nation would be strengthened if these shitheads were to leave.

[No Elephants]

18. Bill Moyers had the owner of this website on this weekend. Everyone should

get familiar with the website and what it says. http://baselinescenario.com/

Also, keep an eye out for Frontline's Inside the Meltdown, which is on tonight in the Northeast. If you don't know when it's on in your area, go to www.pbs.org.

[GeorgeGist]

19. Wall Street failed ...

the sanity test.

[Acadia Blue]

20. Wall Street parasites destroyed everything and they are still rich

and making millions while our contry is a disaster zone.

[Locrian]

21. tell em we dont negotiate with terrorists n/t