Treasury to Banks: "Please Fire Everybody"

By Conor Clarke

This statement from the Federal Reserve seems to have the most stress-test preview details. The full, non-leaked results will be posted at 5pm tonight. The banks that needs more capital will have until June 8 to come up with plan, and until November 9 to implement that plan. But I thought this paragraph, tucked into the middle of the release, had a charmingly euphemistic way of suggesting that the banks might also consider firing a bunch of their managers:


In addition, as part of the 30-day planning process, firms will need to review their existing management and Board in order to assure that the leadership of the firm has sufficient expertise and ability to manage the risks presented by the current economic environment and maintain balance sheet capacity sufficient to continue prudent lending to meet the credit needs of the economy.

Joe Weisenthal and David Zaring have more.

This article available online at:

http://www.theatlantic.com/politics/archive/2009/05/treasury-to-banks-please-fire-everybody/17232/