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To: MythMan who wrote (384666)	4/23/2009 8:07:00 AM
From: Giordano Bruno	Read Replies (2) \| Respond to of 436258

Stress tests flash a lot more red - WSJ The Wall Street Journal reports Federal bank regulators are expected on Friday to start sharing preliminary results of stress tests with the banks that have been scrutinized since February. The findings are expected to be made public next week. Wednesday, analysts assessed the latest implications of the government's criteria after The Wall Street Journal released details of a confidential document that the Federal Reserve gave banks in February. The document provided details about the formulas regulators used to assess loan losses in a worsening economic environment. The criteria the government is using to assess the financial health of the banking industry appear to be roughly in line with standards some analysts and banks already are embedding in their own calculations. Still, based on those assumptions, there is a view banks likely will face hundreds of billions of dollars in additional losses from the recession that is wreaking havoc with mortgages, credit cards, commercial real estate and virtually every other type of loan. Under those assumptions, 13 of the banks undergoing the stress tests could be hit with $240 bln of losses, according to Westwood Capital LLC. " Some analysts thought the government's criteria were tougher than many had been banking on. "We believe these stressed loss assumptions are broadly higher than most bank investors and analysts were anticipating," Ed Najarian, head of bank research at ISI Group, wrote in a note to clients. Under those scenarios, he said, earnings at those banks could be weaker than expected, and most of the institutions could require additional capital.