The Bankwatch

Tracking the consumer evolution of financial services

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:

  1. Banks
  2. Auto sector
  3. executive compensation
  4. Executive replacement
  5. ‘luxury’ purchases, (eg corporate jets)
  6. 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.

Written by Colin Henderson

April 21, 2009 at 12:42

Posted in Uncategorized

Tagged with , , ,

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