Not Tom Paine’s Common Sense

This week we have been thinking about President Obama’s dilemma on how to disclose the results of the banks’ stress tests and whether to allow Goldman Sachs to re-pay TARP borrowings. In a simple world, the answers are straightforward. Would the President and First Lady be satisfied if Maila’s and Sasha’s report cards only showed pass-fail as grades? If you insist upon transparency, you must walk the talk. And, in fact, it does not take a rocket scientist to know which banks are stronger than others. Ratings are reflected in share prices and CDS spreads. Share prices of good banks

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