Bank stress tests - anyone know who failed ?
Discussion
Thom987 said:
Anglo and Bank of Ireland passed these tests last year so I wouldnt read too much in to the results.
They were saying on the news this morning that it's more stringent rules and a different agency running the tests this year. Whether that will make a difference, who knows?
Thom987 said:
Anglo and Bank of Ireland passed these tests last year so I wouldnt read too much in to the results.
It does depend massively on the rules.Though a few over the years have tended to look like
"If a man falls over in your lobby and sues you, will you survive?"
Soveriegn debt is included in this round I hope
Puggit said:
The speed that Santander snapped up the British banks is highly suspect to me, I wouldn't be surprised if they are on the list of failures. Completely as a lay person!
I'd be surprised. In Spain I'd expect the five to be 'Cajas'. Quite a few of them are having problems. Including the one I bank with!Riff Raff said:
I'd be surprised. In Spain I'd expect the five to be 'Cajas'. Quite a few of them are having problems. Including the one I bank with!
Yep, four Cajas and Banco Pastor. I bank with CAM, which is on the list. I should probably move my account, but it's such a pain in the arse to move a current account in Spain............
If GR default and contagion was a scenario I would have expected to see Greece, Italian and French as well as German names on the list. As this wasn't the case then these stress tests were just another series of "relax tests" in reality as the new head of the IASB said about previous tests.
http://www.ft.com/cms/s/0/dc111364-aefa-11e0-bb89-...
Only nine banks failed the long-running stress test carried out on 91 European banks, in a result that potentially undermines claims the exercise was tough enough to restore investors’ faith in the eurozone financial system.
Log in to FT for the rest.
Only nine banks failed the long-running stress test carried out on 91 European banks, in a result that potentially undermines claims the exercise was tough enough to restore investors’ faith in the eurozone financial system.
Log in to FT for the rest.
anonymous said:
[redacted]
This is telling from the article - is it all being tweaked so it's not too hot or cold. And what happens in the next 6 months?No need to worry – or tests too easy?
This is the second time regulators have sought to reassure nervous markets by testing the vulnerability of big banks to financial troubles. The credibility of last year's tests was undermined when several Irish banks, which got the all-clear, had, within months, to be bailed out.
Banks now have to be able to show they would still have capital worth 5 per cent of their assets even if a series of disasters occurred. Crucially, the banks have also been forced to provide more detail on how much they have lent 30 European countries, amid fears the eurozone crisis could prompt another disaster in the financial sector were a government to default on its debts.
Nevertheless, banking experts are divided on the issue of whether the tests are tough enough. That only eight of 90 banks tested failed may suggest the stresses they were asked to model were not sufficiently catastrophic. If too many investors take that view, the tests may fail to reassure markets.
Banks that failed the tests now have six months in which to bring their capital up to the required levels.
Edited by Mermaid on Saturday 16th July 11:43
"Europe's bank stress tests as bad as 1979 Irish driving test"
http://www.telegraph.co.uk/finance/financialcrisis...
"Greek bonds are currently trading in the market at half their face value, yet the EBA seriously asks sophisticated investors to believe that they have properly tested the banks by applying a “haircut” of just 15pc to Greek debt. "
http://www.telegraph.co.uk/finance/financialcrisis...
"Greek bonds are currently trading in the market at half their face value, yet the EBA seriously asks sophisticated investors to believe that they have properly tested the banks by applying a “haircut” of just 15pc to Greek debt. "
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