MoneyHowl.com

Some time in the next two weeks, the Treasury will report on the result of “stress tests” conducted on 19 major banks. But you don’t have to wait to learn the results. It’s already clear that no major bank will be declared insolvent. The administration’s economic assumptions about the worst conditions banks will face err on the side of rosy. In fact, much of the stress testing will be done by the banks themselves. There is no army of examiners poring over bank books. At worst, some banks may be asked to raise additional capital or accept additional aid from the government.

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