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U.k. Treasury Refuses To Release Stress Tests On Rbs, Lloyds

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Anyone care to guess what these figures could be like? :unsure:

I am more inclined to agree with what Vince says here.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

" May 22 (Bloomberg) -- The U.K. refused to release the results of stress tests conducted on British banks, two weeks after the Federal Reserve said similar reviews showed 10 U.S. lenders needed to raise a total of $74.6 billion.

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. 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, the opposition Liberal Democrats’ spokesman on treasury issues, said in an e-mailed statement. “We need a system that is as open and as transparent as that in the United States.....”

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Trying to keep what our MP's have been spending our money on secret worked so well.

You can only infer that the information is incredible bad, if it was neutral or positive I doubt the govt would want to keep it a secret.

The banks must be haemorrhaging money.

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Trying to keep what our MP's have been spending our money on secret worked so well.

You can only infer that the information is incredible bad, if it was neutral or positive I doubt the govt would want to keep it a secret.

The banks must be haemorrhaging money.

you just couldnt make this up

Banana Britain

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It seems to say only one thing. That the news would be too shocking.

People usually think the worst when there are secrets being kept from them.

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Anyone care to guess what these figures could be like? :unsure:

I am more inclined to agree with what Vince says here.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

" May 22 (Bloomberg) -- The U.K. refused to release the results of stress tests conducted on British banks, two weeks after the Federal Reserve said similar reviews showed 10 U.S. lenders needed to raise a total of $74.6 billion.

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. 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, the opposition Liberal Democrats’ spokesman on treasury issues, said in an e-mailed statement. “We need a system that is as open and as transparent as that in the United States.....”

How is keeping it under wraps in any way a good idea? Do they honestly think that traders/those in the know will think it's probably all fine? Clearly it's not fine, or they would have released it. It's like me asking my 4-year-old if he's done something naughty. If there is a long silence as he looks shiftily elsewhere, I don't then think just assume blithely that he's entirely innocent...

Muppets. Cretins.

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"U.k. Treasury Refuses To Release Stress Tests On Rbs, Lloyds, Bloomberg news"

Won't this have the reverse effect? I often hear that the markets don't like uncertainty and so sometimes when expected bad new is released markets actually go up. Conversely, if you try to cover up the bad news, the uncertainty continues and investors stay away.

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Isn't RBS alone worth god knows how many times UK GDP?

So what does it mean when the figures are SO bad they can't be published?

Its like the building societies refusing to give year predictions this years, EVERYONE knows then that property is going to fall and fall and fall.

I read over and over that the government could not afford to allow RBS or Nationwide fail but what if they really can't stop it?

I have asked a similar Q here, can anyone answer?

HPC Link

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you just couldnt make this up

Banana Britain

:D

It seems to say only one thing. That the news would be too shocking.

People usually think the worst when there are secrets being kept from them.

well SarahBell, let's see if the phrase "sell the rumour, buy the fact" is apt in this case. This is a bear market phrase apparently.

So let's see if TSB & HBOS shares drop in the next few days/week eh ? I personally won't be monitoring it though because I really couldn't care less what happens. :D but I'm sure redalert will keep an eye on this for me. ;)

fwiw, the bull market phrase is "Buy the rumour, sell the fact"........apparently.

edited - oops, meant HBOS :unsure:

edit 2 - even cocked up the 1st quote, but instead of buy...fixed now :rolleyes:

Edited by grumpy-old-man-returns

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seems to me they are trying to get a boom going on the basis of lying to the public again, and have simply not learnt their lesson.

I agree with everyone here that witholding the information only gives the obvious that it is very bad.

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seems to me they are trying to get a boom going on the basis of lying to the public again, and have simply not learnt their lesson.

I agree with everyone here that witholding the information only gives the obvious that it is very bad.

Exactly...

and I think that because the tax payer part owns these banks, the tax payer should be entitled to this information. :angry:

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Guest Fedup
Exactly...

and I think that because the tax payer part owns these banks, the tax payer should be entitled to this information. :angry:

It's for our own good that we don't know. The government knows best what is good for us. I look up to them like parents and am glad they act like this.

Also, makes sure you get your 5-a-day.

Edited by Fedup

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Anyone care to guess what these figures could be like? :unsure:

I am more inclined to agree with what Vince says here.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

" May 22 (Bloomberg) -- The U.K. refused to release the results of stress tests conducted on British banks, two weeks after the Federal Reserve said similar reviews showed 10 U.S. lenders needed to raise a total of $74.6 billion.

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. 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, the opposition Liberal Democrats’ spokesman on treasury issues, said in an e-mailed statement. “We need a system that is as open and as transparent as that in the United States.....”

Maybe they haven't done them yet.

I'm surprised that the US authorities haven't forced them to be disclosed. The US banks should be shouting level playing field and asking the regulators to threaten the UK banks with losing their US banking licences.

p-o-p

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So why not publicise those facts?

Simple:

the media, and others, would likely treat these stress scenarios as an official forecast

Not HPC by any chance? When so many here ridicule the BoE for giving a range of forecasts because funnily enough, they cannot predict the future, what chance is there that they would read a stress test with the caveats it would deserve?

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Alphaville:

HM Treasury refuses FOI stress test data

Posted by Paul Murphy on May 22 09:36.

No surprise, really, in news that Bloomberg has had a Freedom of Information request to find out the results of the banking stress tests in the UK turned down.

This is Britain, after all.

Disclosure of the results “at this time may lead to uncertainty in financial markets, either in relation to specific institutions or more generally,” the Treasury said in its response to Bloomberg. “Such instability could require further action by the authorities.”

That’s just a regular fob-off from officialdom. But the suspicion here is that one reason both the HM Treasury and the FSA have been so tight-lipped about the British stress tests is that they would find it difficult to explain the wildly different scenarios used compared with the the (non-)stress tests conducted in the US.

Of course, in testing its own banks, the US Treasury took a handful of mainstream economic forecasts and then alighted on an “adverse scenario” that was actually better than GDP and unemployment forecasts produced by the OECD. The result was a piece of carefully choreographed PR that helped fuel the recent sharp rally in equity prices.

In the UK meanwhile, if the whispers are to be believed, HM Treasury and the FSA actually included much darker forecasts in testing British banks - namely a 50 per cent fall in house prices and, most shockingly, a 16 per cent fall in GDP, peak to trough, over two years.

So why not publicise those facts? Simple: the media, and others, would likely treat these stress scenarios as an official forecast.

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Exactly...

and I think that because the tax payer part owns these banks, the tax payer should be entitled to this information. :angry:

No, according to Lond Mandelleson, if you pay your taxes, obey every law without question, believe everything New Labour tells you without even thinking of questions, and don't look funny, THEN you are entitled.. to not be beaten to death by the police. Unless they really feel like it.

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The only way to restore confidence in the long run is for people to know exactly what the situation is. Then you can go about dealing with it. Keeping things hidden just creates uncertainty.

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... When so many here ridicule the BoE for giving a range of forecasts because funnily enough, they cannot predict the future, what chance is there that they would read a stress test with the caveats it would deserve?
It seems to say only one thing. That the news would be too shocking.

People usually think the worst when there are secrets being kept from them.

It's probably a bit of both.

The stress tests have been done with a worst case scenario that results in systemic collapse.

This would risk panic causing a self fulfilling prophecy, so it is being kept under wraps.

(It could of course be released if a substantial extension of QE is desired).

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The only way to restore confidence in the long run is for people to know exactly what the situation is. Then you can go about dealing with it. Keeping things hidden just creates uncertainty.

If people knew exactly what the situation is, we would have riots before teatime.

And it was ever thus.

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