According to an article on Bloomberg.com titled, "Fed Said to Order Banks to Stay Mum on ‘Stress Test’ Results" the U.S. Federal Reserve has instructed banks to keep the results of their recent financial evaluations to themselves. Treasury Secretary, Geithner considers the banks' stress tests to be like physical examinations administered by doctors to patients. The hope is that the tests will help the administration evaluate the symptoms of financial instability that may exist in the nation's 19 largest banks and decide how to treat them.
While it is important to obtain knowledge and information to properly dissect a problem, publicly traded financial institutions must be transparent. Apparently, the Fed does not want the release of the results to influence the outcome of this month's earnings season. It would seem the much heralded concept of "full disclosure" is now subject to the whim of government.
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