Wells Fargo - U.S. Treasury Stress Test Asinine

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?

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They trying to buy time to sort out any messes.

They don't want to nationalize so they have to figure a way to possibly make some financial conglomerates appear salvageable.

This delay means that their will be a group of people, hopefully not too large, that will have access to some very critical information for an extended period of time that will absolutely crucial to the stock market. Not a good situation.

The only *reasonable* way to value anything

Is assets-liabilities.

Anything beyond that is just wishful thinking.

Any company negative, well, rightly it should be out of business and the C-level executives in jail for fraud or worse.

Any company with a price-to-asset ratio of less than one, is undervalued.

Any company with a price-to-asset ratio of greater than one is overvalued.

Anything else, to me, is irrational and a sign that the market is not only stupid, but dangerously insane.
Moral hazards would not exist in a system designed to eliminate fraud.

Maximum jobs, not maximum profits.