Campbell HarveyPaul Sticht Professor of International Business at The Fuqua School of Business, Duke University.http://www.duke.edu/~charvey/
Harvey is an expert in portfolio management, asset allocation, the cost of capital, and global risk management. He has served or still serves as a consultant or principal to some of the world's leading asset management and consulting firms. He is also editor of the Journal of Finance.
Quote:"Today it was leaked that the Federal Reserve has requested a 'contingency plan' for Bank of America. Supposedly, this includes the possibility of spinning off Merrill Lynch for some extra cash.
"Such a request for a plan is extraordinary. It proves that the Fed's so-called 'stress tests' are flawed. The flawed stress tests have given the public, regulators and the banks a false sense of security. As a result, the banking system is unprepared for a realistic adverse scenario."
More comment is available at Harvey's blog, http://gardenofecon.com/2011/09/the-problems-at-bank-of-america/.