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laurejon

Bnp Paribas Disappointed At Browns Cover Up On The Banks

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U.K. Treasury Refuses to Release Stress Tests on RBS, Lloyds

BNP Paribas and the Global Financial Community are dissapointed that despite Browns speeches to the G20 Leaders with regard to a more open and transparent Financial System, Brown has refused to reveal the results of the Banking Stress Tests recently carried out on the part Nationalised Banks.

It was considered by the G20 leaders that transparancy within he banking system was the only way to recover from the distrust Banks had with one another. Browns cover up despite the request being entered under the freedom of information act only serves to tarnish the reputation of the UK further.

The stress test agreed by the nations of the G20 serves to provide confidence for investors in the financial system. The cover by Brown signifies the very poor state of the Uk banking system whilst under his stewardship. With lightouch regulation being cornerstone of Browns achievments he will leave a poisened challice for his successors when Labour go to the polls and suffer the most humiliating defeat in their entire history. Indeed many political analysts predict that the Labour Party will fail to such a degree that it will never be permitted to enter into mainstream politics again.

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.”

The Financial Services Authority carried out stress tests on U.K. banks earlier this year to determine their ability to withstand losses amid the worst recession in 60 years. Barclays Plc is the only bank to have disclosed its results, saying it will continue to meet the regulator’s capital requirements under various credit risk, market risk and economic scenarios.

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.”

The same request to the FSA was rejected on the grounds it would be too costly to retrieve the documents. Lesley Richardson, an FSA freedom of information officer, said the results wouldn’t be released in any case because the information was confidential.

Bank Aid

The U.K. has committed as much as 1.4 trillion pounds ($2.2 trillion) to bolster the nation’s banking system through direct investments, asset insurance and underwriting loans. The government has nationalized Northern Rock Plc and Bradford & Bingley Plc, and taken controlling stakes Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.

The scenarios used to test Barclays’ assets included a 50 percent drop in U.K. house prices and a recession lasting two years, the Financial Times reported in March, without saying where it got the information. Alistair Smith, a Barclays spokesman, declined to comment.

The Federal Reserve gave banks six months to fill any capital shortfalls identified by the U.S. tests or face expanded federal ownership. At the time, Chairman Ben S. Bernanke said releasing the findings should reassure investors about the soundness of the financial system.

Transparency Questioned

“The transparency of companies over the last few months has significantly improved so it is ironic that the one body who isn’t joining in the transparency is the regulator itself,” said Ian Gordon, an analyst at Exane BNP Paribas in London.

Representatives of RBS, Lloyds, Northern Rock and HSBC Plc declined to comment on whether they passed the U.K.’s stress tests when contacted by Bloomberg News.

Bank stress test results should be made public to improve risk management, Andrew Haldane, executive director for financial stability at the Bank of England, said in a speech in February.

“There is a case for having these results set out regularly in firms’ public reports,” he said. “Having a standardized, published set of such stress-testing results would help improve financial markets’ understanding and hence pricing of bank-specific risk.”

Haldane wasn’t available for comment yesterday.

To contact the reporter on this story: Andrew MacAskill in London at amacaskill@bloomberg.net.

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U.K. Treasury Refuses to Release Stress Tests on RBS, Lloyds

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LJ, please supply links to quoted material if it forms the basis of a thread.

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Of course he wont publish.

They all failed.

and why wouldnt they? we have...the biggest HP bubble in the world.

we have ...the most debt per capita in the world.

we have... huge and covered up public debt which apparently is amongst the lowest in the world.

we have...huge OFF BALANCE SHEET debt in the form of PFI, payable and bailable out of public funds.

so, we have all this debt, a falling GDP and rising unemployment.....well, somebody ISSUED all the debt...and it wasnt the local supermarket....

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Of course he wont publish.

They all failed.

and why wouldnt they? we have...the biggest HP bubble in the world.

we have ...the most debt per capita in the world.

we have... huge and covered up public debt which apparently is amongst the lowest in the world.

we have...huge OFF BALANCE SHEET debt in the form of PFI, payable and bailable out of public funds.

so, we have all this debt, a falling GDP and rising unemployment.....well, somebody ISSUED all the debt...and it wasnt the local supermarket....

Oh come Bloo, everything is five by five, debt is wealth and we are all as rich as creosote.

All we need now is to chip and pin every living organism and collateralise their entire life cycle and we'll be in banker heaven.

Invoice follows......

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Has that complete idiot not figured out yet that testing and not releasing the results to avoid them causing panic is going to lead to....

ARGH!!! We truly are governed by fantasists :angry:

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Hmmm interesting conundrum. Firstly, whisper it quietly, but the stress tests are done by the banks themselves - not the Government and not the FSA. So the data is actually not the property of the Government (even if they are a shareholder).

I do buy the confidentiality angle to some extent as the full details would be commercially sensitive but what's to stop them publishing high level details that wouldn't be commercially sensitive?

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We could try a Freedom of Information request maybe? Just watching them squirm out of that would be funny.

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We could try a Freedom of Information request maybe? Just watching them squirm out of that would be funny.

quite frankly any muppet needing to see the stress test results to form an opinion of these banks viability in the future should clearly have no involvement in the financial industry. No doubt when the next leg down starts, and it is imminent, thyen there will be rumours of "leaked information" and the meeja will do their normal thing of blaming the shortsellers for trying to destroy the country, just as when the evil shorters were clearly destroying HBOS a year ago by pointing out the inevitable

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We could try a Freedom of Information request maybe? Just watching them squirm out of that would be funny.

Unfortunately this would fall under the category of 'national security' as the truthful reporting on the (un)health of the state backed insolvent banks would only drive in the speculators and see a wholesale flight of capital from British territory.

Edited by cashinmattress

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So we can assume things are a lot worse than the analysts have been predicting...

If they were liquid and turning profit, you can bet 110% that a 'leak' would come from within the government, trumpeting the vision of Gordon Brown and the BOE.

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We could try a Freedom of Information request maybe? Just watching them squirm out of that would be funny.

Bloomberg have already tried such a request. And they have already squirmed out of it. Read the previous posts. Oh and do try and keep up. :P

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If they were liquid and turning profit, you can bet 110% that a 'leak' would come from within the government, trumpeting the vision of Gordon Brown and the BOE.

:rolleyes:

They are liquid and turning a profit. A stress test requires that you test for scenarios worse than the current ones and see if you are still liquid and turning a profit under these stressed conditions. A good reason not to share the results is that most would not understand them, journos would spin them to sell more newspapers and it would cause widespread panic amongst the dumb and not so dumb alike.

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