April 21 (Bloomberg) -- Treasury Secretary Timothy Geithner said the “vast majority” of U.S. banks have more capital than needed, stoking a rally in stocks as investors await results of stress tests on the balance sheets of the biggest lenders. “Currently, the vast majority of banks have more capital than they need to be considered well capitalized by their regulators,” Geithner said in testimony to a congressional oversight panel on the government’s financial-rescue program. He added that there will be a “series of options” for lenders deemed to need additional money at the conclusion of the tests. Geithner also said there are signs of “thawing” in credit markets and some indication that confidence is beginning to return. His remarks reflect an improvement in earnings in several lenders’ results for the first quarter, and a reduction in benchmark lending rates this month.Blue line is S&P500 Financial sector, red line is S&P500 Equity Index, intra-day chart by Yahoo.com, click to enlarge.
As Geithner speaks, so goes the market ... He should be testifying on daily basis, the recovery would be assured ...
Wait, but Freddie and Fannie were always considered well capitalized by their regulators?
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