A Federal Reserve document obtained by the Associated Press indicates the government has decided to deflect the attention away from the big banks to smaller regional banks by focusing on loans rather than securities:

“That approach favors a few Wall Street banks while potentially threatening major regional players…

Some analysts said regulators are favoring the largest banks because if even one failed that would pose a severe economic risk. Banks that deal in securities are more interconnected to other corners of the global financial system.

Regulators also face pressure to highlight the weaknesses of some banks, or critics will dismiss the tests as a whitewash. That would undermine the goal of improving confidence in the financial system.”

In other words, the regionals are being sacrificed on the altar of the big banks that the government worships.  We predict this will be treated as the scam it is by the market.