Twenty-four European banks fail EBA stress test

Ponster

BBC Link

Twenty-four European banks have failed stress tests of their finances, the European Banking Authority has announced.

The banks now have nine months to shore up their finances or risk being shut down.

They include nine Italian banks, three Greek banks and three Cypriot banks.

I took a quick look at the results and 3 Irish banks were tested with both AIB and BOI scoring higher than the 5.5% lower limit (6.9% & 9.3%) with TSB failing at (1%).

To compare, out of the Italian, Greek and Cypriot banks mentioned in the article have scores that range from -8% to 4.5%

Sand

More of a problem for the fiscally weak states (and their creditors) than their banks tbh. Even if the banks fail to find private capital, the sovereigns will be forced to pony up the cash. Despite all the lessons dealt out over the past 7 years, there is still no serious efforts to address the mutually dangerous dependency between weak peripheral sovereigns and weak banks.

James esq

Oh my god lads this stress test was just so ridiculous.

This is what happened EBA says "lets tell the world it is safe to bank in the EU.
Lets get a bunch of guys and gals to travel all over the EU and have a few importante meetings somewhere in the well respected north of Europe every few months and then come out with a final report - saying a tiny number of banks are very bold (still) but the rest are brilliant - simple as that"

One of them is known to me, got seconded from the central bank (€98,000 tax free pa) , was given 4 countries and a standard form to fill in for the banks in those countries. Duly reported back, got the secondment extended for another four years at €150,000 pa.

So there is really no need to go into all the minutes about all the little figures, it is just bankers producing figures for other bankers and a nice little earner for the troika acolytes.

realitykeeper

Ponster wrote: »

BBC Link

I took a quick look at the results and 3 Irish banks were tested with both AIB and BOI scoring higher than the 5.5% lower limit (6.9% & 9.3%) with TSB failing at (1%).

To compare, out of the Italian, Greek and Cypriot banks mentioned in the article have scores that range from -8% to 4.5%

The bank stress test was just a costly and time consuming PR exercise. The results are meaningless because the stress that will afflict the banks when Quantitative Easing fails, will overwhelm the the hypothetical scenario of the stress test.

Rightwing

realitykeeper wrote: »

The bank stress test was just a costly and time consuming PR exercise. The results are meaningless because the stress that will afflict the banks when Quantitative Easing fails, will overwhelm the the hypothetical scenario of the stress test.

Trying to con private investors to stump up more cash.