Hal Turner is one of those "tin foil hat" guys (and a general asshat as far as racists are concerned) who dares to talk about a North American Union, the Amero, and the various "conspiracies" in place to keep the little sheeple in line. But he has also busted the United States Treasury in a bold-faced lie.

Yesterday, Turner reported on his blog that he'd somehow received leaked stress test results which revealed 16 of the top 19 banks were technically insolvent. As if that weren't a giant duh and bad enough to begin with, the Treasury has gone so far as to say it does not even have the results. But how could this be when on April 10th the Fed and Treasury insisted that they did not want banks leaking the results for fear of fudging up Q1 earnings calls?

The results via Turner are not pretty and show just how broken the American banking system truly is - false or delusional killer Q1 earnings bullshit be damned:

1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent. (Based upon the “alternative more adverse” scenario which had a 3.3 percent contraction of the U.S. Economy in 2009, accompanied by 8.9 percent unemployment, followed by 0.5 percent growth of the U.S. Economy but a 10.3 percent jobless in 2010.)2) Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans. (Without further government injections of cash)

3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.

4) Of the top 19 banks in the nation, the top five (5) largest banks are under capitalized so dangerously, there is serious doubt about their ability to continue as ongoing businesses.

5) Five large U.S. banks have credit exposure related to their derivatives trading that exceeds their capital, with four in particular - JPMorgan Chase, Goldman Sachs, HSBC Bank America and Citibank - taking especially large risks.

6) Bank of America`s total credit exposure to derivatives was 179 percent of its risk-based capital; Citibank`s was 278 percent; JPMorgan Chase`s, 382 percent; and HSBC America`s, 550 percent. It gets even worse: Goldman Sachs began reporting as a commercial bank, revealing an alarming total credit exposure of 1,056 percent, or more than ten times its capital! (HSBC is NOT in the top 19 banks undergoing a stress test, but is mentioned in the report as an aside because of its risk capital exposure to derivatives)

7) Not only are there serious questions about whether or not JPMorgan Chase, Goldman Sachs,Citibank, Wells Fargo, Sun Trust Bank, HSBC Bank USA, can continue in business, more than 1,800 regional and smaller institutions are at risk of failure despite government bailouts!

The debt crisis is much greater than the government has reported. The FDIC`s "Problem List" of troubled banks includes 252 institutions with assets of $159 billion. 1,816 banks and thrifts are at risk of failure, with total assets of $4.67 trillion, compared to 1,568 institutions, with $2.32 trillion in total assets in prior quarter.

Put bluntly, the entire US Banking System is in complete and total collapse.

Whether or not Turner had these results in hand, the Treasury is now scrambling to cover things up, claiming the report is false simply because they do not even HAVE the results. Again, how is this possible when Bloomberg announced on April 10th that it wanted banks to keep mum on the tests?

Reuters on the Treasury's Monday morning cleanup efforts:

The U.S. Treasury said on Monday there was "no basis" for a report that said its "stress tests" on the health of the nation's 19 top banks showed several were "technically insolvent."

A Treasury spokesman said the department has not yet received the results. [my emphasis]

The Turner Radio Network, which describes itself as a "free speech" blog, said 16 of the 19 are "technically insolvent," citing what it said was a U.S. government report. Shares of several banks fell sharply on the report.

"There is no basis for that report; we do not even have results yet," Treasury Spokesman Andrew Williams said.

The SEC has already contacted Turner, who is now being blamed for the market's pathetic performance today. Send in the clean-up crew, kids, you REALLY fucked this one up!

As if the stress test debacle weren't already a disaster - now the Treasury and Fed are going to have work overtime to clean up this mess. As Turner said, "The problem with lying is that eventually you forget your previous lies and thus get caught when you contradict yourself."

Bwhahahaha, how ya gonna weasel out of this one, Timmy? Huh? Huh? Send in the SEC to go after Turner? Surely he's smarter than that.

BTW, some are saying since Turner is an anti-semitic asshat this information cannot possibly be valid. I remind my darling readers that this is Bizarro World after all - if a tax cheat can run the IRS, who is to say that a nazi can't get leaked Treasury memos? Hmm?

Some are also saying that Martin Weiss is the source of the "leak" and that Turner is just looking to advance his racist agenda.

Who can say? Treasury clean-up campaign? Scandal? Not news? The Reuters press release which supposedly debunks Turner's case as merely a bite-off of Weiss' early white paper won't load.

Fascinating!