Posts Tagged ‘stress’
Last Friday’s Euro Bank Stress Tests have come and gone and have the left the markets feeling unsatisfied as fears have not been assuaged. The major problem of how a sovereign default would affect these banks has been largely ignored, which means that the tests are ineffective.
Meanwhile, we are no further along in the debt [...]
The European Banking Authority (EBA) continues to court controversy with the way it is administering the recent round of bank “stress” tests. The testing process has been in progress since March and is designed to restore confidence in the European banking system awash in questionable sovereign debt.
As part of the evaluation, the banks have been [...]
What’s the deal with those stress tests? It sounds like the setup for a Jerry Seinfeld joke, and given the way the tests were viewed by the markets, it might as well have been. According to the EU, the tests were a tremendous success. According to investors, the results were irrelevant at best, and patently [...]
JCT is on the wires, leading the cheers for the stress tests. What else is h expected to do.
EUR/USD is holding near session highs in the low 1.2980s.
Irish central bank governor Honohan says “It is a good idea, laying out the facts for the major banks. I think it will go some way to removing exaggerated concerns about some particular risks.”
Best the authorities get their collective bottoms in gear then.
They may not be the market-cleansing mechanism most hope for, he says in an essay in the FT. His conclusion:
European officials can do a lot to make the stress test credible; and they should. But, unfortunately, they cannot turn it into a catalyst for Europe’s return to financial normality. Regrettably, this is a [...]
EUR/USD firms bit more, presently at 1.2535.
Euro zone cannot allow a country to default
Here are further details on broader tress tests for EU banks. The ECB plan would prompt tests of 15 German banks, not three, as presently planned.
EUR/USD made a run for trendline resistance at 1.2361 but has stalled at 1.2358 so far. Cable topped out at 1.5017 and is easing again on profit-taking, now at 1.4995. [...]
Luxembourg’s Mersch says he questions whether stress testing the largest banks is sufficient.
He’s not alone.
EUR/USD has dipped toward the base of the recent ranges, now at 1.2365. US equities are easing as well, now up 0.4% after opening up more than 1%. Small stops are seen below 1.2350 but central bank buying was rumored on [...]
