Monday, February 23, 2009

Stress Testing the Banks

When the second part of the TARP payment process was revealed, it was announced that ailing banks would be subjected to "stress tests" and banks that failed these tests would be subject to governmental intervention that some have dubbed "nationalization."

This week the stress tests begin, and it seems like CitiGroup and Bank of America may fail the tests. Now the question turns to Wall Street's reaction to this possibility.