Friday, May 22, 2009
You can't handle the truth
Bloomberg: U.K. Treasury Refuses to Release Stress Tests on RBS, Lloyds
The U.K. has refused to release the results of stress tests conducted on British banks.
Publishing the information may increase instability and force the government to take further action to shore up the U.K. financial system, the Treasury said in response to a Freedom of Information Act request by Bloomberg News that sought the test results and criteria used to evaluate banks.
Two weeks ago the Federal Reserve said similar reviews showed 10 U.S. lenders needed to raise a total of $74.6 billion.U.S regulators said publishing their findings would ease concerns about lenders.
“Keeping the information under wraps will only serve to create more uncertainty in the long term,” Vince Cable, Lib Dem spokesman.
Posted by little professor @ 08:47 AM (1010 views) Add Comment
15 Comments
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1. Kris said...
How unbelievably stupid of our completely moronic government.
2. debtfree said...
How bad are the tests then ?
This will do more damage than good. After MP's expenses scandal, can't believe the UK is now withholding information on banks, which the citizens have bailed out. This is the icing on the cake, parliament needs to be disolved with a complete overhaul to develop a government that can take the citizens of this country forward.
3. japanese uncle said...
Still I want the truth!
4. crunchy said...
Must be bad if they can't spin it!
5. george monsoon said...
hmm
Well it can't be good news can it?
They probably fear a run on the banks, but Information this HOT will undoubtedly leak out.
6. inbreda said...
somebody involved with these tests will be quietly closing down an account with one of the banks, which will get noticed, and will spread.
In fact I think a lot of rumours, true or otherwise will spread as a result of this.
I reckon RBS will be gone in a month. Maybe that will start a rumour?
7. crunchy said...
ATM closed for maintenance, electronic malfunction. Do not panic!
8. george monsoon said...
Imbreda, you could be correct.
Any news relating to government "cover up" would be enough to start the rumours, which will probably have more adverse effect than releasing the results of the stress test.
I still think this information will leak out. Its hotter than the sun.
9. timmy t said...
Disclosure of the results “at this time may lead to uncertainty in financial markets, either in relation to specific institutions or more generally,”
Yep - whereas witholding the results will definitely instil confidence - you couldn't make it up.
10. paul said...
This is a hugely embarrasing failure of democracy, market openness and capitalism all rolled up in one.
From my own research in information theory (ooh get me!), and to quote me in one of my papers that I wrote, by me:
"Information seeks out the highest bidder, legitimate or not"
11. stillthinking said...
not revealing the report is kind of a report in itself. must be that the figures point more to insolvency than illiquidity(?lack of liquidity).
reading around the press recently I do notice a darker attitude. maybe GB won't be able to get away with delaying cuts until the election.
12. 51ck-6-51x said...
So the only logical conclusion to all the information we have available is that, all but one or two UK banks failed to pass the stress test
i.e. Barlays & ( ? or None )
right?
13. 51ck-6-51x said...
paul - could you explain your quote further?
I understand information theory based on Shannon's work, with the measure of surprise being the information entropy, but do not grasp this seeking of which you speak; is your subject of information theory not what I assumed it to be? (or am I being thick?!!)
14. drewster said...
The ideal time to undertake a sharp change in the banking system is over a bank holiday weekend. Is there anyone here who works in a bank and who has been asked to come in this weekend for some "maintenance work"?
15. Jayk said...
Rubbish, we already know that Barclays passed.