Tom Jacobs

Fed Finds a Way to Use Stress Tests to Screw Bank Shareholders One More Time

You seem to write from a vacuum. These very banks negotiated to lower the bar on these supposed stress tests. Further, they have succeeded in watering down the "market values" at which they carry their assets. Finally, they generated their earnings in the first quarter from a combination of AIG using tax payer money to buy out various CDOs at par as opposed to anything like market value as well as some such as Citi booking gains buying back their own debt. Now you object to requiring that the banks not get to include their own internally generated profit projections. Again, I don't know where you are coming from...

FDIC Regulation: Reason for Alarm

Thanks to Alan for making the point on the differing means of government handout. The Wells Fargo deal will actually cost us more as taxpayers than the proposed Citi offer, an unclear conclusion from the link shared by Alan. The original story along with the unconstitutional nature of the administrative law change enabling Wells to proceed was broken by the Washington Post:

www.washingtonpost.com...