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Realistbear

Top Bank Regulator: Stress Tests Just To Calm Markets

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7909553/European-banks-brace-for-reaction-to-stress-tests.html

By Ambrose Evans-Pritchard
Published: 10:27PM BST 25 Jul 2010
The EU operation has been criticised as a public relations stunt since it ruled out sovereign defaults by Greece or any other EMU state, and exempted most high-risk debt from the test.
Jochen Sanio, head of Germany's BaFin regulator, admitted over the weekend that the test was "just an operation to calm the markets".
The proof of the pudding will be whether there is any relief to strains in Europe's interbank lending markets, where smaller Spanish lenders have been shut out altogether...../
"The tests were far too selective and the outcome far too positive," said Klaus Zimmerman, head of Germany's DIW Institute.
In US stress tests last year 10 of the 19 banks failed. They had to raise $75bn (£48.5bn) in new capital.
_______________________________

Euro Bears Vanish as End of Stress Makes Goldman Sachs a Bull
By Matthew Brown - Jul 25, 2010
The combination of growing confidence in Europe’s economy and mounting evidence of a slowdown in the U.S. is driving euro bears into hiding.
__________________________

EU Stress Tests May Be `Missed Opportunity' to Fortify Banks
By Andrew MacAskill - Jul 25, 2010
European Union stress tests found banks need to raise 3.5 billion euros ($4.5 billion) of capital, about a tenth of the lowest analyst estimate, leaving doubts about whether regulators were tough enough.
:lol:
_______________________

http://uk.finance.yahoo.com/news/asia-markets-push-higher-after-europe-stress-tests-afp-909d511c751d.html?x=0' rel="external nofollow">
Asia markets push higher after Europe 'stress tests'
7:04, Monday 26 July 2010
Asian stock markets mostly rose on Monday,
finding reassurance in Europe's banking stress tests
and a strong performance on Wall Street, despite worries about the patchiness of the global recovery

The verdict has already been returned:

$ = Euro 1.29335

Edited by Realistbear

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http://uk.finance.yahoo.com/news/pound-climbs-vs-dollar-after-bank-stress-tests-reuters_molt-6db1e2ef48eb.html?x=0

Pound climbs vs dollar after bank stress tests
0736 GMT, sterling had climbed around 0.4 percent on the day to $1.5502, poking above options-related barriers suspected around $1.5500 to hit its highest since mid-April., 9:01, Monday 26 July 2010
LONDON (
Reuters
) - Sterling hit a three-month high versus the dollar on Monday, extending gains in the aftermath of strong UK economic growth data and tracking gains in other higher-risk currencies following European bank stress tests.

On the one hand you have most of the banking analysts saying the stress tests are bunk and on the other you have the medja going hog wild over the miraculous recovery of the EU banks.

Edited by Realistbear

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Wolfgang Munchau was writing about the stress tests in the FT this morning (Page 11 comment)

He was saying that the tests essentially were designed in order to ensure the major banks passed.

"Ignoring a possible Greek default is like a car crash tester failing to consider the possibility of an oncoming vehicle."

Real world analogies often shine light on an issue from a new angle. The banks were reckless in designing and trading their "sophisticated" products the same way an aircraft manufacturer would be reckless in failing to test-fly its planes before selling them or a pharmacologist would be reckless in failing to test medicines before selling them the general public.

They failed to test the systemic effect their products would have in the first place and now they are actually being forced to carry out testing post-bail-out, they refuse carry out the exercise with integrity.

Same shysters in charge as before, nothing has changed, armageddon guaranteed 100%.

Edited by Dave Spart

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http://uk.finance.yahoo.com/news/pound-climbs-vs-dollar-after-bank-stress-tests-reuters_molt-6db1e2ef48eb.html?x=0

Pound climbs vs dollar after bank stress tests
0736 GMT, sterling had climbed around 0.4 percent on the day to $1.5502, poking above options-related barriers suspected around $1.5500 to hit its highest since mid-April., 9:01, Monday 26 July 2010
LONDON (
Reuters
) - Sterling hit a three-month high versus the dollar on Monday, extending gains in the aftermath of strong UK economic growth data and tracking gains in other higher-risk currencies following European bank stress tests.

On the one hand you have most of the banking analysts saying the stress tests are bunk and on the other you have the medja going hog wild over the miraculous recovery of the EU banks.

I don' think the MSM quite get the possibility that market movements might be unrelated to the news of the day.

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  • 238 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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