While bank executives are still muddling through stress-test results, their communication managers are wrestling with the question about how and what to tell the public.
The big day for the unveiling of the results is Thursday, May 7.
Interviews with heads of corporate-communication and public-relations departments at a number of the 19 stress-tested banks revealed an intense struggle to come up with a plan to reassure investors, counterparties and customers. Communications from the banks may be critical even for those whose bill of health is reasonably clean.
Those deemed short of capital face a daunting task to keep their heads above water, PR executives and lawyers said.
Banks are under a gag order from regulators not to disclose anything about the stress test, but the Federal Reserve, which conducts the test, has made clear that it will disclose certain details about the capital position and capital needs of individual banks.
This is a good example of what Mercury Retrograde periods are good for: looking backwards to see what can be done to improve a given situation. This particular exercise is likely to lead to a certain amount of financial instability, but at least it will be known which banks are in trouble which will help lead to a solution to the bank problems.
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