US planning to divulge details of top banks: report

US planning to divulge details of top banks: report
AFP
Comment E-mail Print Share
First Published: Wed, Apr 15 2009. 02 43 PM IST
Updated: Wed, Apr 15 2009. 02 43 PM IST
Washington: The US government could reveal details about the health of its top 19 banks in a bid to reassure investors about the state of the ailing sector, local media reported Wednesday.
The New York Times, quoting unnamed senior officials, said the administration of President Barack Obama was considering publishing the results of its analysis of individual banks, known as its “stress-tests.”
“It’s becoming clearer that we and the banks are going to have to explain clearly where each bank falls in the spectrum,” the paper quoted an official.
To date Washington has been reticent about publishing details of its analysis, fearing frankness might spark a run on banks deemed to have faired poorly compared to competitors.
The Federal Reserve asked banks not to discuss the tests during earnings season, for fear of destabilizing markets.
But with rumors swirling about the health of the some of the country’s top financial firms, some are now advocating greater candor.
The information that may now be disclosed includes the size of potential loses.
Comment E-mail Print Share
First Published: Wed, Apr 15 2009. 02 43 PM IST