Tuesday, May 5, 2009

Bernanke won't disclose results of Stress Test but Cit and B of A will.

This is significant! In an effort to stave off further government intervention, Citi is considering converting the investment of the Treasury Dept to common stock. In essence, this would take our tax dollar and convert into an ownership stake in what might be a failing bank. Ironically, this article was posted just a few moments after Bernanke said he would not "predisclose" the results of the "Stress Test" but "hopes" that any banks needing to raise additional capital can do so in the private sector without additional government injections.

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