Could be BS, but might be real. This guy has made some outlandish claims in the past, but was recently proven right on the claim of a Homeland Security report on 'right wing extremists'

The U.S. Treasury said Monday there was "no basis" for a report that said its "stress tests" on the health of the nation's 19 top banks showed several were "technically insolvent."

A Treasury spokesman said the department has not yet received the results.

The Turner Radio Network, which describes itself as a "free speech" blog, said 16 of the 19 are "technically insolvent," citing what it said was a U.S. government report. Shares of several banks fell sharply on the report.

"There is no basis for that report; we do not even have results yet," Treasury Spokesman Andrew Williams said.

The Obama administration has said the results would be released on May 4.

Bank stocks, already lower after Bank of America reported disappointing quarterly results and outlook, fell further. The Select Sector SPDR Financial ETF was down 5.4 percent after the blog post was widely disseminated by at least two third-party news services.

After the market open the KBW Bank Index fell 9.3 percent.

The site, http://turnerradionetwork.blogspot.c...t-results.html, is not related to Turner Broadcasting.

"It certainly did (move the market) for a while. It raised people's eyebrows. People had associated it with (Ted) Turner's broadcast network," said Lou Brien, market strategist with DRW Trading in Chicago.

The blog said "Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in nonpaying loans."

"If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding," the post added.

The blog was picked up by some third-party news services and cited by another trader for the drop in bank shares.

The Turner Radio Network is described by some monitoring groups as a white supremacist organization.

A U.S. Treasury spokesman said there’s no basis to a blog posting that buffeted financial stocks by saying that most of the nation’s largest banks are insolvent.

Andrew Williams, a Treasury spokesman, dismissed the report from Hal Turner of North Bergen, New Jersey, “particularly given we don’t have stress test results yet.” Turner has advocated violence against blacks, Jews and immigrants on his Web site and Internet radio show, according to the Anti- Defamation League, created in 1913 to monitor anti-Semitism.

The Financial Select Sector SPDR Fund, an exchange-traded fund tracking banks, brokerages and insurers, fell to $10.62 from $10.75 in six minutes after cited Turner’s blog post at 8:14 a.m. in New York. At 8:30 a.m., FlyOnTheWall advised readers to disregard the earlier story.

The XLF, as the financial ETF is known, sank to $9.87 at 4 p.m. in New York after JPMorgan Chase & Co. said banks worldwide are likely to realize about $400 billion more in losses on soured assets, requiring further injections of government capital.

In his blog posting, Turner said 16 of the banks are “already technically insolvent.” He mentioned HSBC Holdings Plc as one of the lenders. HSBC isn’t among the 19 banks being examined, according to the government.

Reached by telephone, Turner declined to say who would have given him the government’s so-called stress test of the 19 biggest U.S. banks. The Federal Reserve has said it plans to release results on May 4.

Turner, when asked if one of the quotes on the ADL Web site sounded like something he once said, replied that “it certainly fits the niche of the radio show at the time.”

Did a dire posting on an obscure blog about the Treasury’s bank stress tests contribute to Wall Street’s sell-off of financial stocks on Monday?

Hal Turner, a blogger as well as a former controversial conservative radio host, wrote on his Turner Radio Network Blog on Sunday night that he had obtained the results of the stress tests, which are set to be announced in the coming weeks, and he asserted that the results were troubling.

A Treasury Department spokesman, Andrew Williams, told CNBC on Monday that there was “no basis” for Mr. Turner’s report and that the Treasury had yet to receive the results of the test.

Stocks fell sharply on Monday after Bank of America reported $4.2 billion in earnings, as investors became concerned that much of the profits being reported by banks were coming from one-time gains or accounting adjustments. Some news reports said Mr. Turner’s blog post contributed to Wall Street’s nervousness.

Mr. Turner, who said he was “shocked and disappointed” that the Treasury was denying the existence of the report, claimed that it showed 16 of the 19 banks involved in the stress test were “technically insolvent.” He asserted that if any two of those 16 banks were to fail, it would totally wipe out all remaining deposit insurance from the Federal Deposit Insurance Corporation.

Mr. Turner said the report showed that the top five banks tested are so undercapitalized that there is serious doubt about their ability to function as continuing businesses.

He wrote that the report listed JPMorgan Chase, Goldman Sachs, HSBC, Citibank and Bank of America as having credit exposures to derivatives that vastly outstripped their risk capital. Mr. Turner asserted that Goldman apparently had a total credit exposure of 1,056 percent, or more than 10 times its capital.

Mr. Turner told DealBook that he was not going to post the actual documents he received on his Web site until after the government posts the result, since, he said, he would like to see how the government “spun the results.”

He also refused to identify which banks passed and which banks failed the stress tests in order to prevent a run on those banks.

The original post:

The Turner Radio Network has obtained "stress test" results for the top 19 Banks in the USA. (Corrections/clarifications below in orange)

The stress tests were conducted to determine how well, if at all, the top 19 banks in the USA could withstand further or future economic hardship.

When the tests were completed, regulators within the Treasury and inside the Federal Reserve began bickering with each other as to whether or not the test results should be made public. That bickering continues to this very day as evidenced by this "main stream media" report.

The Turner Radio Network has obtained the stress test results. They are very bad. The most salient points from the stress tests appear below.

1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent. (Based upon the “alternative more adverse” scenario which had a 3.3 percent contraction of the U.S. Economy in 2009, accompanied by 8.9 percent unemployment, followed by 0.5 percent growth of the U.S. Economy but a 10.3 percent jobless in 2010.)

2) Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans. (Without further government injections of cash)

3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.

4) Of the top 19 banks in the nation, the top five (5) largest banks are under capitalized so dangerously, there is serious doubt about their ability to continue as ongoing businesses.

5) Five large U.S. banks have credit exposure related to their derivatives trading that exceeds their capital, with four in particular - JPMorgan Chase, Goldman Sachs, HSBC Bank America and Citibank - taking especially large risks.

6) Bank of America`s total credit exposure to derivatives was 179 percent of its risk-based capital; Citibank`s was 278 percent; JPMorgan Chase`s, 382 percent; and HSBC America`s, 550 percent. It gets even worse: Goldman Sachs began reporting as a commercial bank, revealing an alarming total credit exposure of 1,056 percent, or more than ten times its capital! (HSBC is NOT in the top 19 banks undergoing a stress test, but is mentioned in the report as an aside because of its risk capital exposure to derivatives)

7) Not only are there serious questions about whether or not JPMorgan Chase, Goldman Sachs,Citibank, Wells Fargo, Sun Trust Bank, HSBC Bank USA, can continue in business, more than 1,800 regional and smaller institutions are at risk of failure despite government bailouts!

The debt crisis is much greater than the government has reported. The FDIC`s "Problem List" of troubled banks includes 252 institutions with assets of $159 billion. 1,816 banks and thrifts are at risk of failure, with total assets of $4.67 trillion, compared to 1,568 institutions, with $2.32 trillion in total assets in prior quarter.

Put bluntly, the entire US Banking System is in complete and total collapse.


For those who may be skeptical about the veracity of the stress test report above, be reminded that only last Sunday, April 12, this radio network obtained and published a Department of Homeland Security (DHS) Memo outlining their concerns that returning US military vets posed a domestic security threat as "right wing extremists." That memo, available here, is marked "FOR OFFICIAL USE ONLY" and contained strict warnings that it was not to be released to the public or to the media. We obtained it and published it days before other media outlets.

Link to Reuters deleted at their request 0842 HRS 21 April 2009

Further, todays Wall Street Journal (April 20, 2009) is confirming at this link that lending by the largest banks has DECREASED 23% since the government began the T.A.R.P. program, causing many in Congress to ask where the money has actually been going. Apparently, it has been going into propping-up the failing banks instead of out in loans to the public.

Additional details and proofs are forthcoming. . . . . continue to check back on this developing story.

UPDATE 1154 HRS EDT April 20, 2009 --

The United States Treasury has openly and brazenly lied regarding our stress test report and we can prove they have lied about it.

This morning, the United States Treasury issued a statement (HERE) claiming they do not yet have the results of the Stress Tests, rebuking our report

How do we know its a lie?

Because of this from April 10th:

April 10 (Bloomberg) -- The U.S. Federal Reserve has told Goldman Sachs Group Inc., Citigroup Inc. and other banks to keep mum on the results of “stress tests” that will gauge their ability to weather the recession, people familiar with the matter said.

The Fed wants to ensure that the report cards don’t leak during earnings conference calls scheduled for this month. Such a scenario might push stock prices lower for banks perceived as weak and interfere with the government’s plan to release the results in an orderly fashion later this month.

How can you be ordered not to release something you don't have?

Since that was published on the 10th of April, we therefore know that the results exist and Treasury, the banks involved and The Fed have them, as The Fed was concerned that some banks might try to use them (perhaps in a misleading fashion) during their first quarter conference calls and earnings releases.

Sorry guys, but whether the Turner Radio Network has the real results or not is no longer material. What's material is the claim that Treasury doesn't have them, since they told the banks on the 10th not to release them, and you can't release what you don't have.

The problem with lying is that eventually you forget your previous lies and thus get caught when you contradict yourself.


North Bergen, NJ -- This afternoon at around 3:00 PM eastern US time, Turner Radio Network (TRN) received a call from John Polesi at the U.S. Securities & Exchange Commission in Washington, DC.

Mr. Polise asked about our story concerning the "stress test" as reported lower on this page. He specifically asked if we did, in fact, have a copy of the report?

I asked why he wanted to know? He replied "it is a material document."

He went on to say that the SEC is trying to determine what aspects of the report - if any - the SEC might require publicly traded companies to disclose publicly. I replied that I am aware that such discussions have been taking place between the SEC, the US Treasury and the Federal Reserve and that reports of those discussions have appeared in the main stream media of late.

He then asked "If I send you a request for documents, will you send the report to me?" I replied, "Would the request be a Subpoena?" He responded "No" and then asked, "If the request did come in the form of a Subpoena, if I got the Commission to approve one, would you supply the document?" I responded "We would have to speak with our legal counsel first, but I suspect we would move to quash any such Subpoena."

He thanked me for my time and hung up.

Caller ID indicated the call originated from 202-551-2000, but that is a non-working number. So we called directory assistance in Washington, DC and obtained the correct number for the US SEC.

After dialing the correct number, we got an automated attendant and selected 5 for the SEC media office. A young man named Kevin answered and confirmed for us that John Polise does work for the Enforcement Division of the SEC and that all telephone calls originating from their office show up on caller ID with that non-working phone number. As such, it appears this inquiry was legitimate.

Clearly, our report about the bank stress test results has struck a raw nerve in Washington, DC and elsewhere. To have both the United States Treasury comment on our story and the United States Securities and Exchange Commission call us literally within hours of our report indicates how seriously the powers-that-be are taking our revelations.

If there was nothing to our report, why all the fuss?

If they think anyone at TRN might be intimidated by a federal inquiry, they are sadly mistaken.

We have successfully defeated investigations by the FBI, The Joint Terrorism Task Force, The US Secret Service, the US Marshal Service, the US Capitol Police and a host of state and local law enforcement agencies over the past eight years of our existence. The SEC doesn't faze us at all.

We've ruffled a lot of feathers with this report. Stay tuned for further developments.