A few tidbits are emerging after the Fed released their white paper on the bank stress test saying that most US banks have capital reserves “well in excess” of “well capitalized” levels. I’m sure this will be examined much more closely over the weekend and by people a lot more qualified than by myself, but the initial stock market reaction is for S&P futures to fall about 5 points. As I’ve said before we won’t know how much banks have to write off until US House prices reach the bottom and for me this is still some way away.
Some fantastically vague comments emanating from the White House saying that some banks to release own stress test results ( and we should believe these why ?) and the Government are also to release some data and are inclined to provide transparancy. Make of that what you will.
