The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Abigail with attitude: Stress tests worthy of derision, not discussion

Last July, we had a round of very unstressful stress tests for the European banks. A mere seven banks failed and were ordered to raise an additional €3 billion of capital. We are living in a completely Kafkaesque world where most people apart from me seem to be high on drugs. I have seen no widespread derision surrounding the fact that, a mere 12 months later, the European authorities have had to conduct another round of stress tests. And as CNBC talking heads drone on about the likelihood of Greece, Ireland and Portugal defaulting, these tests insisted that only government bonds held on trading books be marked to market (as opposed to those being held to maturity).

In late July, European big-wigs gathered in Brussels for another emergency session. They were urged to find a bold solution. They simply produced another inadequate box of Band-Aids. I wonder what Egan makes of the latest news. 

  Wendi slaps the pie-man

  Co-chiefs could leave Deutsche vulnerable to eurozone crisis

  Egan leaves egg on big raters’ faces

  Stress tests worthy of derision, not discussion

  Headcount alert: Goldman leads where others are sure to follow

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree