[RT] Fw: AP: Fed tests harder on regional banks, RealTraders Email List Archive

Attach is picture of

June es

with current 78 min candle

if we close this candle down it will be again an official sell

we also have bearish divergence on long term trading (bottom indicator ) as prices made higher hi and the indicator did not,,

tomorrow is 49 day high

and 196 day hi both from

Armstrong

spread sheet

Ben

sos timing service

profitok@xxxxxxxxxxxxx

----- Original Message -----
From: kwmurphy@xxxxxxxxxxxxx
Date: Wednesday, April 22, 2009 3:24 pm
Subject: Re: [TimeandCycles] Re: AP: Fed tests harder on regional banks
To: TimeandCycles@xxxxxxxxxxxxxxx, TimeandCycles@xxxxxxxxxxxxxxx
Cc: rwoith

> Nasdaq 100 peak Oct 31, 2007, low Nov 21, 2008, 268 trading
> days. Multiply 268 x .382 and the result is 102.376. Today is
> the 102nd day from Nov 21, 2008.
> -------------- Original message from "rwoith"
> : --------------
>
>
>
>
>
> So the Treasury refers all questions to the FED – and the FED
> refuses to comment – Beautiful. Nothing like transparency. Then
> they assume that the derivatives (still some Quadrillion dollars
> worth by some accounts) will suffer no losses going forward,
> even though so far they have suffered 30 – 40% losses! The
> Stress Tests are a Total Sham. One would have to think FAZ will
> be a Very Nice play once the misguided euphoria plays itself out.
> --- In TimeandCycles@xxxxxxxxxxxxxxx, EDWARD MOYER
> wrote:
> >
> > If the fourth estate knew what it was supposed to be doing,
> and did it, we might not be in this mess in the first place.
> This isn't me, by the way, saying it's their fault that we are
> in this mess.
> >
> >
> >
> > ________________________________
> > From: Joseph Ehardt
> > To: TimeandCycles
> > Sent: Tuesday, April 21, 2009 3:36:14 PM
> > Subject: [TimeandCycles] AP: Fed tests harder on regional banks
> >
> >
> >
> >
> > The
> > following story is just about the weirdest line of reasoning
> that I can recall.
> > It is becoming increasingly clear that business/financial
> reporters have no
> > intellectual framework whatsoever when writing their
> > stories.
> > http://finance.yahoo.com/news/AP-Exclusive-Fed-tests-harder-
> apf-14987391.html
> > AP Exclusive: Fed tests harder on regional
> > banks
> > AP Exclusive: 'Stress tests' focus on loans, not
> > securities, will favor big banks
> > * Daniel Wagner, AP Business Writer
> > * Tuesday April 21, 2009, 2:15 pm EDT
> > WASHINGTON (AP) -- The government's "stress tests"
> > of 19 large U.S. banks take a harsher view of loans than of
> other troubled
> > assets, according to a Federal Reserve document obtained by
> The Associated
> > Press. That approach favors a few Wall Street banks while
> potentially
> > threatening major regional players.
> > Regulators will use the tests to determine which
> > banks are healthy, which need more capital and which might
> fail if the recession
> > worsened.
> > The Fed is scheduled to detail its methodology for
> > the tests on Friday and release the results May 4.
> > The regulators' focus could spell trouble for big
> > regional banks undergoing the tests. Their portfolios have
> more individual loans
> > and fewer of the big pools of securitized loans that Wall
> Street giants
> > specialize in.
> > Some analysts said regulators are favoring the
> > largest banks because if even one failed that would pose a
> severe economic risk.
> > Banks that deal in securities are more interconnected to other
> corners of the
> > global financial system.
> > Regulators also face pressure to highlight the
> > weaknesses of some banks, or critics will dismiss the tests as
> a whitewash. That
> > would undermine the goal of improving confidence in the
> financial
> > system.
> > Under one scenario, the test assumes banks will see
> > "no further losses" on these complex securities at the heart
> of the credit
> > crisis. By contrast, it estimates that the banks' individual
> loans will lose up
> > to 20 percent of their value.
> > The methodology "certainly penalizes those banks
> > that are more involved in traditional banking, which frankly
> have been
> > performing better in recent months," said Wayne Abernathy, a
> former Treasury
> > Department official now with the American Bankers Association.
> > He said banks' loan portfolios have lost only about
> > 5 percent of their value so far, whereas the value of complex
> securities are
> > down 30 to 40 percent.
> > A spokesman for the Federal Reserve would not
> > comment. A Treasury Department spokesman referred questions to
> the
> > Fed.
> > Regulators are running the tests on all financial
> > institutions with assets of at least $100 billion. The 19
> institutions on the
> > list include an insurer, Wall Street brokerages and regional
> banks, such as
> > Cincinnati-based Fifth Third Bancorp and Cleveland-based Keycorp.
> > A spokeswoman for Fifth Third Bancorp said the bank
> > would not comment.
> > Keycorp did not immediately respond to requests for
> > comment. The bank said Tuesday it lost $488 million in the
> first quarter, partly
> > due to a large increase in its set-asides for loan
> > losses.
> >
>
>
>