Will delaying the stress test results put further stress on the market?

Updated

This morning, the Federal Reserve announced that it is going to postpone the release of the bank stress test results, which were supposed to be made public on May 4. The results will now be released on May 7.

One reason for the delay is that regulators and bank execs are a bit concerned about how the announcement will impact weaker institutions. Could it lead to the collapse of these smaller banks? A senior vice president at the American Bankers' Association in Washington told Bloomberg, "Everybody understands they've got a tiger by the tail here . . . If they don't let him go gently, there will be a lot of mauling going on." Regulators are concerned that the results could harm the lower-priced stocks, which could eventually lead another push lower for the markets overall.

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