Banks asked to keep quiet on stress tests
WASHINGTON (Reuters) - The U.S. Treasury Department is asking banks not to mention the regulatory "stress tests" as part of their first-quarter earnings results, according to a source familiar with government discussions.
Many of the top 19 U.S. banks who are undergoing regulatory stress tests have already completed internal versions of the examinations, which are designed to determine their capital needs under more adverse economic conditions.
However, the banks do not yet know the results of the government's version of the assessment, the source said.
U.S. President Barack Obama is meeting on Friday with top financial regulators to discuss the stress tests, the results of which are anxiously anticipated by financial markets. Officials have said they will release the results in some form by the end of April.
Most major U.S. banks will have reported their first-quarter results by April 24.
The source said the desire to keep the stress test results under wraps will be discussed at the meeting on Friday.
Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke and Federal Deposit Insurance Corp Chairman Sheila Bair are scheduled to attend the meeting, as well as top White House economic adviser Larry Summers, U.S. Securities and Exchange Commission Chairman Mary Schapiro, and U.S. Comptroller of the Currency John Dugan.
The regulators are expected to brief Obama on the progress of the stress tests, and discuss what next steps may be necessary after the tests. Continued...
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