Financial Times FT.com

Adult enough to see FSA’s gloomy scenarios

By Andrew Hill

Published: May 8 2009 20:12 | Last updated: May 8 2009 20:12

Insiders called it the “cans and candles” scenario. But just how much tinned food would Royal Bank of Scotland, Lloyds, Barclays and the rest need to stockpile to survive the Financial Services Authority’s feared stress test?

If the banks were American, we would now know – virtually down to the exact number of cases of nightlights and noodles in each bank’s fallout shelter. We would also know the forecasts used to reach that result. The Federal Reserve published what it called its “baseline” and “more adverse” scenarios (don’t say “worst case” – the Fed tested against “severe but plausible” conditions) two weeks before Thursday’s unveiling of the individual test outcomes.

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