What do to?

It might make sense to release everything, but without linking the data to individual banks. That would provide a snapshot of the banking industry’s current strength without slamming individual banks. Release of the information also would provide insight into the efficacy of the TARP program.

But even if the information weren’t tied to individual banks, the smart analyst could easily match the bank to the balance sheet. A cogent research report therefore could be curtains for a weaker bank, even if it’s not named in the government’s report.

On Tuesday, Goldman Sachs (GS) raised $5 billion in a stock sale and plans to use the net proceeds to help repay the $10 billion it received through TARP. Strong earnings suggest the banking system is rebounding.

This is public money and the public has an absolute right to know how its funds have been used. But let’s think this one through. It wouldn’t be helpful for Uncle Sam to issue what could easily become de facto rankings of banks, especially when we don’t know the methodology and politics could easily distort the conclusion.

We need to get this right. After all, it’s just the nation’s banking system we’re talking about.