TOUCHDOWN: BANKS' STRESS TEST EASES TENSION

A double tip of the TD&F cap to the exercise just completed in the U.S. banking sector. The “Stress Test” as it was dubbed, was undertaken by the Obama administration and essentially assessed how big a future hit the top American banks could take and still stay in business. It was a risky move, given that it could have uncovered major problems which, in turn, might have prompted a run by depositors on banks found to be shaky. But purely from a communications standpoint, it has turned out to be a winning move in two key areas. First, it put a clear and responsive process in place in a time of crisis. This is a key fundamental in any ongoing crisis situation: the more you can point to a process designed to get to the bottom of the problem and help chart a way out, the better. It shows action and creates a space to point to in response to the key question of “what are you doing about the situation?” And second, the results seem a little brighter than some had expected, and indicate that to the best estimations, the system can take another sizeable shock without coming unglued altogether. “The results released today should provide considerable comfort to investors and the public,” Federal Reserve Board chairman Ben Bernanke said. That should ease tensions and further help put the shaky American economy back on a more stable footing.