Geithner Vows to Make Public Stress Test Models

Treasury Secretary Timothy Geithner today promised to share the federal government’s stress test models with the Congressional Oversight Panel and the public.

Geithner said at a combative COP hearing today that Treasury would at the least make public enough components of the stress test to allow average Americans to run their own tests of US banks.

Geithner made the commitment to release the stress test data and details in response to pointed requests from COP Chair Elizabeth Warren for the materials. If indeed Geithner makes good on his promise, it will be a remarkable step in disclosure of government regulatory materials. We shall see if he does so.

In other news from the hearing, Geithner would not commit to conducting the stress tests again, despite the fact that the average unemployment rate for the year has hit the stress test model’s assumption.

He also said Treasury is still considering whether it will seek an extension of the Emergency Economic Stabilization Act, which allowed for the creation of Troubled Asset Relief Program (TARP). EESA expires at yearend, and the act allows Treasury to request an extension from Congress.