Wednesday, July 7, 2010

EU Bank Stress Test

Seeing some of the details come out for the Europe bank stress tests, and looks like minimal stress.  17 percent writedowns for the sovereign debt of the periphery countries, i.e., PIIGS.  Everyone will pass this test and everybody will be considered well capitalized.  The script comes straight out of the movies with a happy ending.  European bank stocks will likely selloff on the news later this month.

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