Bloomberg has a story, Wells Fargo Chief Assails TARP, Calls Stress Test ‘Asinine’ , where the CEO of Wells Fargo also said:
We do stress tests all the time on all of our portfolios,” Kovacevich said. “We share those stress tests with our regulators. It is absolutely asinine that somebody would announce we’re going to do stress tests for banks and we’ll give you the answer in 12 weeks.
He was referring to how short sellers will gang up on a stock during that long of a window but what I find interesting is it appears banks already know if they are insolvent or need private capital and so on from their own books....
So, what exactly is the delay in sorting out the good banks from the bad then?
Could it be that all of your disclosure Wells Fargo didn't show the real problem going on until it was way too late?