The Obama administration is considering whether to reveal which of the country’s largest banks are most likely to fail, the Wall Street Journal is reporting.
Officials are mulling making public their “stress test” results, which indicate how well the 19 largest banks will endure the economic downturn. The stronger banks soon will begin repaying federal money, and the weaker ones won’t.
Revealing this information should add a new element to the “stress test.” Somebody’s gonna feel a lot of stress.
This is kinda like waiting for your midterm exam grades to come in — except you hope your bank got a good score.
A major concern among analysts is that, by revealing which banks aren’t faring well, the administration might spur depositors at those banks to take all their cash out immediately. And why would the administration want depositors to keep their money?