-Fox Business.com, June 8, 2009 by Peter Barnes
http://www.foxbusiness.com/story/markets/industries/finance/tarp-overseers-say-banks-need-new-stress-tests/
In a special study for the panel included in the draft report, Talley and Walden gave the stress test generally favorable marks. “We conclude that the Federal Reserve Board’s risk modeling approach is, on the whole, a reasonable one, erring for the most part on the conservative side,” they wrote to the panel…. Still, the researchers raised concerns about the program’s transparency and lack of data disclosure, which they said could limit checks of the test by outside researchers.
-CNBC, June 9, 2009 by Albert Bozzo
http://www.cnbc.com/id/31177176
The highly anticipated stress test report is partly the work of outside consultants. The committee said it used two “internationally-renowned experts in risk analysis” to review the process; they are Professor Eric Talley, Co-Director of the Berkeley Center for Law, Business and the Economy at the University of California, and Professor Johan Walden, an assistant professor at the University’s Haas School of Business.
-The Wall Street Journal, Market Watch, June 9, 2009 by Ronald D. Orol
http://www.marketwatch.com/story/more-stress-tests-urged-for-banks
The two academics argued that important details about bank assets were not publicly provided, making it difficult for anyone to replicate the results. They also argued that the hostile scenario considered by the tests only looked at an adverse scenario through 2010, a period that does not consider potential problems in the commercial real estate market that could continue in later years.