http://dukeresearchadvantage.com/charvey/2009/05/08/reflecting-on-the-stress-tests/ Research that Matters Sat, 06 Mar 2010 19:03:11 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://dukeresearchadvantage.com/charvey/2009/05/08/reflecting-on-the-stress-tests/comment-page-1/#comment-319 Stress test of major US banks « Home page of Tony Bellotti Wed, 03 Jun 2009 11:32:43 +0000 http://dukeresearchadvantage.com/?p=893#comment-319 [...] Several US financial commentators have dismissed these stress tests as too weak and it has been done simply to allay the fears of the public and investors in the US banking system.  The conditions used by the Fed to represent “more adverse” conditions were not sufficiently adverse and some of the indicators, such as unemployment rate, are already close to the value chosen for adveerse conditions (ie adverse is normal!).  For further details, Professor Campbell Harvey at Duke University (NC)  gives a detailed criticism. [...]<div class="comment-remix-meta"><a href="#" class="quote" onclick="quote('319','Stress test of major US banks « Home page of Tony Bellotti','[...] Several US financial commentators have dismissed these stress tests as too weak and it has been done simply to allay the fears of the public and investors in the US banking system.  The conditions used by the Fed to represent “more adverse” conditions were not sufficiently adverse and some of the indicators, such as unemployment rate, are already close to the value chosen for adveerse conditions (ie adverse is normal!).  For further details, Professor Campbell Harvey at Duke University (NC)  gives a detailed criticism. [...]'); return false;">Quote</a></div> [...] Several US financial commentators have dismissed these stress tests as too weak and it has been done simply to allay the fears of the public and investors in the US banking system.  The conditions used by the Fed to represent “more adverse” conditions were not sufficiently adverse and some of the indicators, such as unemployment rate, are already close to the value chosen for adveerse conditions (ie adverse is normal!).  For further details, Professor Campbell Harvey at Duke University (NC)  gives a detailed criticism. [...]

Quote

]]>