Yglesias

Stress Tests

CREDIT:

One reason not to nationalize insolvent banks, or so I’m told, is that it might lead to the politicization of finance. You’d have politicians making business decisions rather than doing things the American way and letting businessmen make the political decisions: “US regulators will delay the release of stress test results for the country‚Äôs 19 biggest banks until next Thursday, after some lenders, including Citigroup and Bank of America, objected to government demands that they needed to raise billions in fresh capital.”

Because of course it’s never regulators’ job to do things that the managers of regulated firms don’t like!