The U.S. Federal Reserve has told Goldman Sachs Group Inc., Citigroup Inc. and other banks to keep mum on the results of “stress tests” that will gauge their ability to weather the recession.
The Fed wants to ensure that the report cards don’t leak during earnings conference calls scheduled for this month…
“If you allow banks to talk about it, people are just going to assume that the ones that don’t comment about it failed,” said Paul Miller, an analyst at FBR Capital Markets in Arlington, Virginia.
Regulators are using the tests to determine whether the 19 biggest banks have enough capital to cover loan losses during the next two years. [via Bloomberg]