Saturday, February 28, 2009

Bank Stress Test Formula

Banks must fail the test to receive new assistance from the government. But what does it measure?
Treasury Department's Bank Stress Test a Mystery
"...the stress tests are considering worst-case scenarios, and the government doesn't want the tests to be construed as predictions. For example, if a stress test takes into account 12 percent unemployment, the public could believe that the government is predicting 12 percent unemployment...."

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