WASHINGTON - April 19, 2009 - The Hal Turner Radio Network has obtained "stress test" results for the top 19 Banks in the United States. The stress tests were conducted to determine how well, if at all, the top 19 banks in the U.S. could withstand further or future economic hardship.

When the tests were completed, regulators within the Treasury and inside the Federal Reserve began bickering with each other as to whether or not the test results should be made public. That bickering continues.

The Turner Radio Network has obtained the stress test results. They are very bad. The most salient points from the stress tests appear below.

1. Of the top 19 banks in the nation, 16 are already technically insolvent.
2. Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans.
3. If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.
4. Of the top 19 banks in the nation, the top five largest banks are undercapitalized so dangerously, there is serious doubt about their ability to continue as ongoing businesses.
5. Five large U.S. banks have credit exposure related to their derivatives trading that exceeds their capital, with four in particular - JPMorgan Chase, Goldman Sachs, HSBC Bank America and Citibank - taking especially large risks.
6. Bank of America`s total credit exposure to derivatives was 179 percent of its risk-based capital; Citibank`s was 278 percent; JPMorgan Chase`s, 382 percent; and HSBC America`s, 550 percent. It gets even worse: Goldman Sachs began reporting as a commercial bank, revealing an alarming total credit exposure of 1,056 percent, or more than ten times its capital!
7. Not only are there serious questions about whether or not JPMorgan Chase, Goldman Sachs, Citibank, Wells Fargo, Sun Trust Bank, and HSBC Bank USA can continue in business, more than 1,800 regional and smaller institutions are at risk of failure despite government bailouts!

The debt crisis is much greater than the government has reported. The FDIC`s "Problem List" of troubled banks includes 252 institutions with assets of $159 billion. 1,816 banks and thrifts are at risk of failure, with total assets of $4.67 trillion, compared to 1,568 institutions, with $2.32 trillion in total assets in prior quarter.

Put bluntly, the entire U.S. banking system is in complete and total collapse.


April 20, 2009 - The United States Treasury has openly and brazenly lied regarding our stress test report and we can prove they have lied about it.

This morning, the United States Treasury issued a statement claiming they do not yet have the results of the stress tests.

How do we know its a lie?

Because of this:

• April 10 (Bloomberg) - The U.S. Federal Reserve has told Goldman Sachs Group Inc., Citigroup Inc. and other banks to keep mum on the results of stress tests that will gauge their ability to weather the recession, people familiar with the matter said.
  
  The Fed wants to ensure that the report cards don’t leak during earnings conference calls scheduled for this month. Such a scenario might push stock prices lower for banks perceived as weak and interfere with the government’s plan to release the results in an orderly fashion later this month.

How can you be ordered not to release something you don't have?

Since that was published on the 10th of April, we therefore know that the results exist and Treasury, the banks involved, and the Federal Reserve have them, since the Fed was concerned that some banks might try to use them (perhaps in a misleading fashion) during their first quarter conference calls and earnings releases.

Sorry guys, but whether the Hal Turner Radio Network has the real results or not is no longer material. What is material is the official claim that Treasury doesn't have them, since they told the banks on April 10th not to release them, and you can't release what you don't have!

The problem with lying is that eventually you forget your previous lies and thus get caught when you contradict yourself.

Furthermore, today’s Wall Street Journal is confirming that lending by the largest banks has decreased 23% since the government began the T.A.R.P. program, causing many in Congress to ask where the money has actually been going. Apparently, it has been going into propping-up the failing banks instead of in loans to the public.