Comments on: Where are the baseline stress-test results? http://blogs.reuters.com/felix-salmon/2009/06/09/where-are-the-baseline-stress-test-results/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: jck http://blogs.reuters.com/felix-salmon/2009/06/09/where-are-the-baseline-stress-test-results/comment-page-1/#comment-2568 Tue, 09 Jun 2009 21:08:45 +0000 http://blogs.reuters.com/felix-salmon/2009/06/09/where-are-the-baseline-stress-test-results/#comment-2568 “If we knew how much difference there was between the baseline test and the more-adverse test….”
We DO know the difference “in aggregate” as Treasury released indicative loss rates for both the baseline and adverse scenarios. Ball park figures losses are about 35% lower under the baseline scenario than the adverse one, so you can extrapolate the capital needed “in aggregate” under the baseline scenario. I think it would have been unwise to release the data per bank as that would give infornmation that could be exploited against individual banks.

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By: q http://blogs.reuters.com/felix-salmon/2009/06/09/where-are-the-baseline-stress-test-results/comment-page-1/#comment-2562 Tue, 09 Jun 2009 20:26:33 +0000 http://blogs.reuters.com/felix-salmon/2009/06/09/where-are-the-baseline-stress-test-results/#comment-2562 not quite. there are multiple dimensions to the inputs, so you would need several independent observations to do a linear extrapolation. or if i’m not correct, can you explain what how to do what you suggest?

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