GO
Loading...

See What People Are Saying About... The Danger Of Making Stress Test Results Public

Wednesday, 15 Apr 2009 | 10:14 AM ET

It looks like those clandestine "stress tests" aren't going to be so clandestine after all.

Although some investors were concerned that the results would not be made public -- or at least made public in a meaningful way -- those fears appear to be unfounded.

The New York Times reports that the Obama administration has decided to reveal some sensitive details of the "stress tests" after concluding that keeping many of the findings secret could be much worse for the market -- sending investors fleeing from financial institutions rumored to be weakest.

Advocates of making the results public say that a lack of transparency is what triggered the current financial crisis and although it could mean consolidation, they say, 'let the pieces fall where they may.' Opponents of the move argue that investors would dump shares of weak banks so fast it would make your head spin.

The stress tests, announced in February, were designed to see if banks are adequately capitalized. Banks that are found to need more money would then have six months to raise it, or take funds directly from the government in a new round of capital injections.

And that leads to our Fast Money Reader Poll. Do you think results from the stress test should be made public or kept private?



______________________________________________________
Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep your comments private? Send those questions and comments to fastmoney@cnbc.com.

CNBC.com with wires

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report