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German Bank Hypo Real Estate Fails Stress Test

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http://www.bloomberg.com/news/2010-07-19/germany-s-hypo-real-estate-is-said-to-fail-eu-stress-test-on-bank-capital.html

Hypo Real Estate Holding AG, the German lender taken over by the government following the financial crisis, failed a Europe-wide banking stress test, two people familiar with the results said.

Hypo Real Estate didn’t pass a stress scenario on its capital that assumes an economic slowdown and sovereign-debt losses, said the people, who declined to be identified before an announcement on July 23. An official at Munich-based Hypo Real Estate declined to comment.

European Union regulators are examining the strength of banks as they seek to reassure investors about the firms’ resilience to potential losses amid the region’s sovereign-debt crisis. The tests are being applied to 91 of Europe’s biggest banks, including 14 German lenders.

Not a lot on this yet, just breaking on doomberg....

Could there be more to come?

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You need a sacrificial lamb (or two) to give the test some credibility.

If a genuine and fair test were applied, a majority of the big banks (US and Euro) would be, or would have been, completely insolvent at some point in the crisis.

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http://www.bloomberg.com/news/2010-07-19/germany-s-hypo-real-estate-is-said-to-fail-eu-stress-test-on-bank-capital.html

Not a lot on this yet, just breaking on doomberg....

Could there be more to come?

There should be more to come, from France, in particular, but this cannot be allowed under any circumstances.

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http://www.bloomberg.com/news/2010-07-19/germany-s-hypo-real-estate-is-said-to-fail-eu-stress-test-on-bank-capital.html

Not a lot on this yet, just breaking on doomberg....

Could there be more to come?

nah.....:

http://www.bloomberg.com/news/2010-07-19/euro-gains-as-stress-test-optimism-reduces-sovereign-debt-crisis-concern.html

Euro Gains as Stress Test Optimism Reduces Sovereign Debt Crisis Concern
By Catarina Saraiva - Jul 19, 2010
The euro rose against most of its major counterparts on speculation the release of European bank stress-test results this week will show strength in the region’s banking sector, easing concern that the debt crisis will worsen.
The Hungarian forint fell to the weakest level in

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nah.....:

http://www.bloomberg...is-concern.html

Euro Gains as Stress Test Optimism Reduces Sovereign Debt Crisis Concern
By Catarina Saraiva - Jul 19, 2010
The euro rose against most of its major counterparts on speculation the release of European bank stress-test results this week will show strength in the region's banking sector, easing concern that the debt crisis will worsen.
The Hungarian forint fell to the weakest level in

speculation on the strength of banks?? surely banks are the concrete bulwarks of the economy.

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You need a sacrificial lamb (or two) to give the test some credibility.

If a genuine and fair test were applied, a majority of the big banks (US and Euro) would be, or would have been, completely insolvent at some point in the crisis.

If you or I traded whilst insolvent it would be a criminal offence. If they do it, obviously it's because they haven't yet had enough taxpayer bail out money. I don't trust these stress tests already. They will be designed to try and pretend that all is well with banks, otherwise the EU would not have asked for them. No doubt they will find a way to present the info for market appetite.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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