Details On US Bank Rescue Plan, Stress Tests

Here are some links related to the bank rescue plan and the stress tests the government will be administering:

An article providing an overview (WSJ) of the stress tests and the latest banking rescue plan.

A FAQ on the Stress Tests, and a WSJ blog post discussing whether or not the test scenarios are dire enough.

Finally here is a look at the terms and conditions for the Banking rescue plan.

At this point there isn’t much to say about the rescue plan that hasn’t been said already, except to say that the success of this (or any other plan) really comes down to whether or not the government is working on addressing symptoms or root causes.

As for the stress tests not only am I concerned about whether or not the scenarios are dire enough, but I’m also wondering if the people administering the tests are up to the job. After all aren’t these the same regulators who should’ve had the inside view on things, yet didn’t see any of this coming? All that being said I can’t deny the fact that it’s a step in the right direction, and it may even be a catalyst for real change in terms of forcing the government to come to grips with the true nature of the problem.

Only time will tell.

Disclosure: at the time of publishing the author didn’t own a position in any of the companies mentioned in this article; the ideas expressed are solely the opinions of the author and shouldn’t be viewed as financial or investment advice.

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