Sunday, July 17, 2011

EU Bank Stress Test - another EU 'dog and pony show'!

The lid is already starting to be lifted on the normal EU PR farce behind last Friday's bank stress tests. Here are a few items from a report linked here:

Describing the process as "constrained", the EBA admitted that figures given by the banks in some cases "materially" changed after being challenged.
.....the EBA required banks only to take a 15pc loss on holdings of Greek government debt, even though the bonds are currently trading in the market at about half their face value.

Analysts at Credit Suisse said on Friday they calculated that, using figures published by the banks taking part in the tests, 14 should have failed with a total capital shortfall of €45bn – some 18 times the amount that the EBA said the banks that failed needed to raise.


Anonymous Anonymous said...
We maybe next?!!!

10:44 PM  

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