Word on the street is that many of the European banks F.A.I.L.E.D. the ever popular stress tests. While we investigate this a bit further to get the whole list, might I suggest you get your broker on the phone and buy dollars enough to make you holler, cause Momma wants a brand new bag and it ain’t going to be paid for in Euros!
Will have the full story up in a bit.
UPDATE: Apparently only seven small banks actually failed the stress test. Wonderful news! But really, is it? According to a recent article in the WSJ, the results of the test is not so much a reflection of how strong the banks are, but more about how stupid this whole exercise was given that the test was basically set up in order to make sure the major banks squeaked by, as is the case with Postbank, one of Germany’s largest.
Oh, I wish I could live in this fairytale land where taking subsidized monies from the government to keep afloat apparently continues to allow me to pass the test to determine my long-term viability. Great, upwards and onwards with self-delusion! Paging Mr. Hayward- looks like he has a job running the European banks if this whole BP gig doesn’t work out. No common sense, gumption or honesty is required- can there be a better fit?