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One In Six Banks Expected To Fail Eu-Wide Stress Tests

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http://www.zerohedge.com/article/one-six-banks-expected-fail-eu-wide-stress-tests

The first piece of red herring news out of Europe is already on the tape, after Reuters reports that 15 out of 91 banks are expected to fail the second round of stress tests: "Up to one in six European banks is set to fail an EU-wide financial health check, according to euro zone sources close to the stress-testing, as officials scramble to set up backstops for those at risk. Euro zone sources said the European Banking Authority is set to announce within weeks that between 10 and 15 of the 91 banks being tested had failed the tests, with casualties expected in Greece, Germany, Portugal and Spain. In the drive to ensure the credibility of the bank assessments, the European Banking Authority (EBA), which runs the tests and the European Central Bank, which sets the macroeconomic scenarios, are pushing for a higher number of banks to fail than last year's seven. "How many do we expect to fail? I would say 10 to 15," said one senior euro zone central banking source." Of course, the reason why this is total non-news is that while the EBA will huff and puff, the end result, just like last year, will be absolutely no failures, as Europe has no failsafe mechanisms to deal with the aftereffects of a bank failure chain reaction. Expect futures, which dipped briefly on this news to more than rebound, as this merely confirms that the ECB will inject even more money to keep the SS Ponzi afloat for a few more months.

Does this mean the UK giant turds are fully sea worthy?

I wonder how many of these banks will fail in the coming months/years? Irelands banks passed the last stress test with flying colours that didn't turn out too well...

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Does this mean the UK giant turds are fully sea worthy?

I wonder how many of these banks will fail in the coming months/years? Irelands banks passed the last stress test with flying colours that didn't turn out too well...

Until someone dares to find out how much fraudulent paper has been sliced and diced with OK stuff to create more AAA equities than there was genuine original debt, no-one really knows what the exposure is worldwide.

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And the rest. Depends what they include and what they don't. Depends on what support is offered and what isn't. Depends on how many more lies to us all.

Surely the Banks know what their liabilities are and know what loans are performing? I thought they had computers nowadays :unsure:

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Surely the Banks know what their liabilities are and know what loans are performing? I thought they had computers nowadays :unsure:

And if they are trading insolvently, they must close themselves down.

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it also depends on how they're marking their assets

Absolutely but if an audit was being done surely they have data to make an educated guess.

i wonder how much the big consultancy/accountancy firms get for doin these stress tests. Double bubble all round I bet :blink:

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  • 312 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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