Nerves are running rampant as the release date of the stress test results approaches.
The fact that regulators announced they were performing stress tests on the 19 largest banks and declared they would publicize the results was “a huge mistake,” former Dallas Fed president Bob McTeer writes on his blog.
“Bank regulators routinely perform stress tests and require the banks to do so; so they won’t learn anything new,” he says.
And releasing the results only puts the government in a “no-win situation,” he adds.
“I think it was a gimmick to buy time that wasn’t thought through,” he notes. “Anything they announce will have a downside with no upside I can think of.”
