SIGTARP report and report to Congress on stress tests | Apr 19th, 2009
The only word for this document is breathtaking. It is breathtaking because it touches a large amount of the US economy, and the largest businesses in the economy. It deals with:
- Banks
- Auto sector
- executive compensation
- Executive replacement
- ‘luxury’ purchases, (eg corporate jets)
- SIGTARP administration
And the detail contained in the 247 pages is work that is substantially net new since January this year. I say this in defence of Geithner, and his quiet approach at first. He has been rather busy. But to the report to Congress today.
The report sigtarp-april2009_quarterly_report_to_congress: SIGTARP site.
Summary of Geithners testimony at FT. He descirbes the Stress test results as mixed. A quick review of the report tells me that the answer is not captured in a sentence, so have to dig further to find out what mixed means.
Tim Geithner acknowledged that evidence of improved liquidity as a result of the bank bail-out was “mixed”, but defended the $700bn troubled assets relief programme against charges that it gave an easy ride to the financial sector.
Appearing before a Congressional oversight panel on Tuesday, the Treasury secretary said interbank lending, corporate issuance and credit spreads showed signs of a thaw in credit. “To date, frankly, the evidence is mixed,” he said.
