Bank "Stress Test" Results Leaked - NOT GOOD!

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Sunday, April 19, 2009

LEAKED! Bank Stress Test Results !

The Turner Radio Network has obtained "stress test" results for the top 19 Banks in the USA.

(Corrections below in orange)



The stress tests were conducted to determine how well, if at all, the top 19 banks in the USA could withstand further or future economic hardship.



When the tests were completed, regulators within the Treasury and inside the Federal Reserve began bickering with each other as to whether or not the test results should be made public. That bickering continues to this very day as evidenced by this "main stream media" report.



The Turner Radio Network has obtained the stress test results. They are very bad. The most salient points from the stress tests appear below.



1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent. (Based upon the ?alternative more adverse? scenario which had a 3.3 percent contraction of the U.S. Economy in 2009, accompanied by 8.9 percent unemployment, followed by 0.5 percent growth of the U.S. Economy but a 10.3 percent jobless in 2010.)



2) Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans. (Without further government injections of cash)



3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.



4) Of the top 19 banks in the nation, the top five (5) largest banks are under capitalized so dangerously, there is serious doubt about their ability to continue as ongoing businesses.



5) Five large U.S. banks have credit exposure related to their derivatives trading that exceeds their capital, with four in particular - JPMorgan Chase, Goldman Sachs, HSBC Bank America and Citibank - taking especially large risks.



6) Bank of America`s total credit exposure to derivatives was 179 percent of its risk-based capital; Citibank`s was 278 percent; JPMorgan Chase`s, 382 percent; and HSBC America`s, 550 percent. It gets even worse: Goldman Sachs began reporting as a commercial bank, revealing an alarming total credit exposure of 1,056 percent, or more than ten times its capital! (HSBC is NOT in the top 19 banks undergoing a stress test, but is mentioned in the report as an aside because of its risk capital exposure to derivatives)



7) Not only are there serious questions about whether or not JPMorgan Chase, Goldman Sachs,Citibank, Wells Fargo, Sun Trust Bank, HSBC Bank USA, can continue in business, more than 1,800 regional and smaller institutions are at risk of failure despite government bailouts!



The debt crisis is much greater than the government has reported. The FDIC`s "Problem List" of troubled banks includes 252 institutions with assets of $159 billion. 1,816 banks and thrifts are at risk of failure, with total assets of $4.67 trillion, compared to 1,568 institutions, with $2.32 trillion in total assets in prior quarter.



Put bluntly, the entire US Banking System is in complete and total collapse.



Bonifides



For those who may be skeptical about the veracity of the stress test report above, be reminded that only last Sunday, April 12, this radio network obtained and published a Department of Homeland Security (DHS) Memo outlining their concerns that returning US military vets posed a domestic security threat as "right wing extremists." That memo, available here, is marked "FOR OFFICIAL USE ONLY" and contained strict warnings that it was not to be released to the public or to the media. We obtained it and published it days before other media outlets.



Details of certain aspects of the stress test reported above have now been CONFIRMED through REUTERS News service when they disclosed the risk-capital percentages publicly on April 6, 2009 at this link

<strong>http://www.reuters.com/article/pressRelease/idUS180066+06-Apr-2009+BW20090406</strong>



Further, todays Wall Street Journal (April 20, 2009) is confirming at this link that lending by the largest banks has DECREASED 23% since the government began the T.A.R.P. program, causing many in Congress to ask where the money has actually been going. Apparently, it has been going into propping-up the failing banks instead of out in loans to the public.



Additional details and proofs are forthcoming. . . . . continue to check back on this developing story.



UPDATE 1154 HRS EDT April 20, 2009 --



The United States Treasury has openly and brazenly lied regarding our stress test report and we can prove they have lied about it.



This morning, the United States Treasury issued a statement (HERE) claiming they do not yet have the results of the Stress Tests, rebuking our report



How do we know its a lie?



Because of this from April 10th:



April 10 (Bloomberg) -- The U.S. Federal Reserve has told Goldman Sachs Group Inc., Citigroup Inc. and other banks to keep mum on the results of ?stress tests? that will gauge their ability to weather the recession, people familiar with the matter said.



The Fed wants to ensure that the report cards don?t leak during earnings conference calls scheduled for this month. Such a scenario might push stock prices lower for banks perceived as weak and interfere with the government?s plan to release the results in an orderly fashion later this month.
 
Treasury Says ?No Basis? to Report on Bank Testing (Update2)

<A href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aZCb6UIETseA">http://www.bloomberg.com/apps/news?pid=20601087&sid=aZCb6UIETseA</A>
 
Turner Radio Network... sounds legit eh? Maybe like some part of Turner Broadcasting? Wrong... it refers to the radio show of a some guy named <a href="http://en.wikipedia.org/wiki/Hal_Turner">Hal Turner</a>.



From Wikipedia:

<blockquote>Harold Charles "Hal" Turner is an American white nationalist and white supremacist from North Bergen, New Jersey. He ran his program, The Hal Turner Show, as a webcast from his home once a week, and depended on donations from his listeners. He quit the show in July 2008. In August his website also closed down, though he retains a blog.



Turner promotes antisemitism (including the rounding up and killing of Jews)[1] and opposes the existence of the state of Israel.[2] He also denies the Holocaust.[3] In 2005, Turner organized what he billed as a "rally against violence" after a white student was beaten by a black student at a high school. In 2006, he got into a fight with Jaime Vazquez, a former Jersey City deputy mayor, after Vazquez called him a "racist coward". Turner has made numerous threats against political figures on his website and in other forums.</blockquote>


His blog is located at <a href="http://turnerradionetwork.blogspot.com">turnerradionetwork.blogspot.com</a>.



I thought the Wiki might have been exaggerated until I found this on his blog:



<a href="http://turnerradionetwork.blogspot.com/2009/04/easter-celebration.html">http://turnerradionetwork.blogspot.com/2009/04/easter-celebration.html</a>



It could be true, but I won't be heading toward my bunker until the news comes from a more respectable source.
 
my bad guys. i would have posted a more reliable source had i found one.



this was emailed to me from a co-worker with no link. i googled the title of the article and got the link to tuner radio and had no idea what tuner radio is or was. just for the record i am in no way a nationalist or white supremacist.



i will check the sources of items that i post for the future. sorry for any inconvenience.
 
One method of leaking very damaging information is to route it through an unreliable source. It questions the validity of the information while allowing the truth to be disseminated to the general public.



How else could you release the fact that our entire banking system is insolvent (a fact we already know BTW)? If you put that news on the AP newswire, there would be pandemonium.
 
[quote author="IrvineRenter" date=1240296608]One method of leaking very damaging information is to route it through an unreliable source. It questions the validity of the information while allowing the truth to be disseminated to the general public.



How else could you release the fact that our entire banking system is insolvent (a fact we already know BTW)? If you put that news on the AP newswire, there would be pandemonium.</blockquote>


good point. however if you feel it is not new worth please delete the thread.
 
I have no doubts that all 16 banks are insolvent, but when I saw this article this morning, I doubted the source as the results of the real stress tests. It is highly unlikely that the stress tests will show the truth about the banks. All that said, the one thing that gave this article any credibility in my eyes is the Treasury's denial of the source. Why in the world would the Treasury bother?
 
[quote author="awgee" date=1240299180]Why in the world would the Treasury bother?</blockquote>


That was a tip-off to me as well. There are thousands of websites where crackpots say all kinds of stupid things (anyone visited the main blog lately). Why the treasury would respond to this one is very surprising. If it was completely untrue, they would have said nothing.
 
[quote author="IrvineRenter" date=1240302419][quote author="awgee" date=1240299180]Why in the world would the Treasury bother?</blockquote>


That was a tip-off to me as well. There are thousands of websites where crackpots say all kinds of stupid things (anyone visited the main blog lately). Why the treasury would respond to this one is very surprising. If it was completely untrue, they would have said nothing.</blockquote>
Great point, but I just can't see the gov't coming out and saying that the crap is hitting the fan with one or more of these large banks. That bad press would lead to a run on those banks which would result in nationalization. Why not just keep the lies going until the truth needs to come out down the line and deal with things at that point (standard operating procedure for the gov't)???
 
the whole stress test is nonsense, as if we really need a 10,000 page govt-sponsored research report that takes a key dept of our federal govt several months to put together, when there's any entire industry of people who already do that.
 
[quote author="asianinvasian" date=1240317264]Everybody already knows they're not solvent. This is not news. The question is what is the treasury going to do about it.</blockquote>
LOL people with half of a brain know that they are insolvent however if the brain dead masses where to get wind of this all hell would break loose.
 
[quote author="asianinvasian" date=1240317264]Everybody already knows they're not solvent. This is not news. The question is what is the treasury going to do about it.</blockquote>


quite true... because geitner is always so clear about what treasury is going to do about it...



headlines after his last major policy announcement:

Roubini Op/ED WSJ - There's Virtue In Geithner's Vague Bank Plan

Seeking Alpha - Geithner's Vague Plan

Portfolio Magazine - Geithner's Vague Plan

Huffington Post - Geithner's Vague Bad Bank Plan Aggravates Credit Crunch

USA Today - Geithner's 'vague' bailout speech tied to last-minute strategy



anyone noticed a familiar trend?
 
These numbers sound reasonable to me, but I don't think the stress test will show anything like that. Obama's going to release the stress test results on May 4th, and if that's what they show, he'll have to abandon his current approach, which assumes the banking system is fundamentally solvent. Those results would force him to nationalize most of the banking system pronto, and his administration has been doing everything it can to avoid that.
 
[quote author="FairEconomist" date=1240382691]These numbers sound reasonable to me, but I don't think the stress test will show anything like that. Obama's going to release the stress test results on May 4th, and if that's what they show, he'll have to abandon his current approach, which assumes the banking system is fundamentally solvent. Those results would force him to nationalize most of the banking system pronto, and his administration has been doing everything it can to avoid that.</blockquote>


The stress tests are being given and published with the intention of calming anxiety and producing confidence and have nothing to do with reality. Reality is all the major banks are insolvent.
 
[quote author="awgee" date=1240387349][quote author="FairEconomist" date=1240382691]These numbers sound reasonable to me, but I don't think the stress test will show anything like that. Obama's going to release the stress test results on May 4th, and if that's what they show, he'll have to abandon his current approach, which assumes the banking system is fundamentally solvent. Those results would force him to nationalize most of the banking system pronto, and his administration has been doing everything it can to avoid that.</blockquote>


The stress tests are being given and published with the intention of calming anxiety and producing confidence and have nothing to do with reality. Reality is all the major banks are insolvent.</blockquote>


Whom exactly is this supposed to inspire confidence with? Investors are going to see through the charade; although, some will buy anyway because they figure the government is giving them a free put option by letting them know these banks will not be nationalized. The general public may be placated by this for a while, but they will quickly tire of not being able to get a loan from these insolvent banks.



From what I can see, the government strategy seems to be one of buying time and hope that the banks can make enough money on the huge interest rate spreads they are enjoying right now before everyone figures out they are bankrupt. That plus finding ways of funneling them money clandestinely.
 
Typical Clinton political move. Leak and/or float trial balloon first and see how it goes. Even if the new is horrific, it's not as bad when the real facts come out later. Desensitize the people, isn't that what Orwell wrote once?

There's no doubt the news is bad but Obambi didn't want the stock market to soil itself in the wake of this suckers rally. Once the real news is printed we'll see who's laughing on Wall St.
 
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