Monday, December 26, 2011

Seven Of 91 Europe Banks Would Fail Stress Tests

The Committee of European Banking Supervisors announced that seven out of 91 European banks failed its stress tests and would have had a Tier 1 capital ratio of less than 6% following an adverse economic scenario and a fall in the value of sovereign bonds.

The number is probably better than expected, and one would assume that when the detail by back is released that the only troubled firms will be the smallest ones on the list

MarketWatch reported The Association of Spanish Banks said Friday that all of Spain’s large and domestic banks have passed the stress tests, including Banco Santander and BBVA. However, five savings banks in Spain, which are unlisted, failed under the most adverse test scenario.

And, there are reports that Greece’s ATE Bank failed the stress tests

It’s not a meaningful event.Main announcement here.

Douglas A. McIntyre

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