U.S. Bank Stress Test Results Delayed as Conclusions Debated

[Subdivisions]

he Federal Reserve is postponing the release of stress tests on the biggest U.S. banks while executives debate preliminary findings with examiners, according to government and industry officials.

The results, originally scheduled for publication on May 4, now may not be revealed until toward the end of next week, said the people, who declined to be identified. A new release date may be announced as soon as today, they said.

Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices.

“Everybody understands they’ve got a tiger by the tail here,” said Mark Tenhundfeld, a senior vice president at the American Bankers’ Association in Washington. “If they don’t let him go gently, there will be a lot of mauling going on.”

-snip-

http://www.bloomberg.com/apps/news?pid=20601087&sid=aVlgKH_MT_mo&refer=home">MORE »

Uhhhh-huhhhh...Must be really bad...

[RB TexLa]

1. Actually it's probably really good for some and really bad for others and they

want to protect the market share of those who failed. Delay it a couple of weeks and then they will say the two banks who did very poorly have such complicated business that you can't put much faith in the results. They will claim they had to work day and night to figure it out.