No U.S. Banks Will Close Due To Stress Tests

April 9th, 2009 (1) Posted By Pat Dollard.

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WASHINGTON (Reuters) – U.S. officials will not look to close any banks based on the results of “stress tests” being conducted to determine how the largest U.S. banks would fare under more adverse economic conditions, a source familiar with official talks said on Thursday.

“You can’t close a bank based on a hypothetical,” the source said, speaking anonymously because the tests, being done by the U.S. Treasury, are still being finalized. “And you wouldn’t want to anyhow, based on the size of the banks.”

However, the tests are likely to show that some banks may have sizable capital needs under the conditions being tested, which is “common sense,” the source said.

Officials are still discussing how to release the results of the stress tests, and the decision will likely be made by the Treasury, the source said, adding that officials are aiming to release them in some form at the end of April after the bank earnings season is over.

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  • JCD

    “Nothing to see here folks, just move along.” —
    The official government line on the banks, even though all of the major banks are insolvent and within an inch of collapsing, though some are positing a “profit”.

    Ok then, if Wells Fargo posted a record profit today, does that mean they are going to pay back the billions in TARP money they received? And if they’re posting record profits, why were they in line for money to begin with? When will Americans be outraged enough by this giveaway to the banksters to finally take to the streets and demand their heads?