Stress Test Mess

I said that the banks ought to sue over the stress tests if it looked like it was going to be ridiculous.  Turns out that it almost was and they almost did...

"At times, frustrations boiled over. Negotiations with Wells Fargo, where Chairman Richard Kovacevich had publicly derided the stress tests as "asinine," were particularly heated, according to people familiar with the matter. Government officials worried San Francisco-based Wells might file a lawsuit contesting the Fed's findings."

Yeah, I bet the Feds didn't like being called asinine so they were out for WFC.  The WSJ has the behind the scenes story.

Here's another lovely tidbit...

"SunTrust Banks Inc. also persuaded the Fed to significantly reduce the size of its estimated capital gap to $2.2 billion, after identifying mathematical errors in the Fed's earlier calculations, according to a person familiar with the matter."

Well, good thing that the Government did this and we all can have confidence now that the Feds have spoken.  Oh and by the way, the Obama administration figured out the budget wrong, they'll need another $60 billion to pay for their healthcare disaster.

Indeed, the country is in the very best of hands.