FDIC looking to extend TLGP

Funny. I thought I heard the government tell me that all the banks passed the Stress Tests and that the economy was doing Green Shoots.
So then why should this program need to be extended?

(Bloomberg) -- The Federal Deposit Insurance Corp. said it may temporarily extend a program guaranteeing accounts that don’t pay interest as it moves to maintain confidence in the banking system while weaning companies from government aid.

The FDIC board today voted to seek comment on a six-month extension of the program, which protects non-interest paying accounts exceeding the $250,000 insurance limit. The move would extend the safeguard, introduced in October as part of the Temporary Liquidity Guarantee Program, through June 2010.

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in the GAO report

Instapopulist on GAO June TARP,

the projected losses of the 19 banks from the stress tests is listed as about $1 Trillion dollars and that was under some "conditions" such as increased unemployment past projected (true!), continued drop in home prices and sales (true!)....

From the main report (don't read the highlights, the real information is in the full report)

Based on data as of December 31, 2008, the Federal Reserve estimated that total losses for the 19 companies during the 2009 to 2010 period would be approximately $600 billion, in addition to any losses prior to 2009 (table 6). As a result, the total losses for the top 19 U.S. bank holding companies since the beginning of the financial crisis in the second quarter of 2007 would be nearly $950 billion. The $600 billion represents a 7.7 percent loss of total risk-weighted assets for the 19 companies.

So, in other words, what I got out of it is the "stress tests" are all good...oops, but only under these macro economic conditions...

things go South...well, oops!

and things are going South, esp. on unemployment.

This is on p. 31, around table 6.

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