Europe - Bank `Stress` Tests
CVN Choices
07-26-2010
The results of `stress` tests have European banks were designed
to re-assure markets rather than provide useful information.
The tests didn`t include any government defaults, lower
property prices, or higher unemployment.
Given those assumptions, it is hard to imagine how any
bank would ever fail.
As David Enrich in the Wall Street Journal said, `Regulators
figured that property values would keep rising or
hold steady in a worst-case economic scenario.`
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