By DAVID E. SANGER and ERIC DASH
Published: April 14, 2009
WASHINGTON — The Obama administration is drawing up plans to disclose the conditions of the 19 biggest banks in the country, according to senior administration officials, as it tries to restore confidence in the financial system without unnerving investors.
The administration has decided to reveal some sensitive details of the stress tests now being completed after concluding that keeping many of the findings secret could send investors fleeing from financial institutions rumored to be weakest.
While all of the banks are expected to pass the tests, some are expected to be graded more highly than others. Officials have deliberately left murky just how much they intend to reveal — or to encourage the banks to reveal — about how well they would weather difficult economic conditions over the next two years.
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The banks, officials say, have not been told of any test results, but since they know what information they have had to provide, they can probably estimate their own results.
Despite the regulators’ warning, there is evidence that some banks are trying to signal to the markets early that their quarterly results will look good — and, by implication, that investors should not worry about the tests.
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