After Repeated Facts Presented That Stress Tests Are Scam, Europe Relents To Disclose Testing Methods, Even As Tests Still Remain A Scam
It appears that constant badgering by fringe skeptics that Europe's stress tests are the dumbest thing since, well, our own "stress tests", has prompted European banking regulators to divulge just what the methodology of said testing will be tomorrow, ahead of the result announcement on July 23. According to Reuters: "The Committee of European Bank Supervisors (CEBS)
Wednesday outline the methodology of a stress test that
simulates the impact of a severe economic shock on about 100
banks in the euro zone and other countries, sources close to the
process said." The reason: "The move, agreed last week, comes as speculation
national authorities and bankers are massaging the test design
to make sure their systems fare well, potentially undermining
the regulators' goal to boost confidence in the banks." And because lying within the confines of a set of parameters has never happened before in Europe (well, except for those Goldman facilitated currency swaps with Greece and Italy, and the whole Eurostat scandal) this is supposed to make everyone fully convinced that Europe will for once be fully honest and upfront with everyone.
More from Reuters, highlighting just how transparent the stress test will be:
In a sign of political influence, three sources
CEBS may not publish a list of the participating banks because
it was still not finally decided which German banks would take
Yes, the credibility builds...
The results of the stress tests, including data
individual banks, are due to be published on July 23. It will
include around 100 banks in the euro zone and Great Britain,
Sweden and Denmark, sources have said.
Surely, Spain's Cajas will be test too...
"If every bank passes the test, the stress wasn't
sufficient, the markets will say," said one senior banker who
like the other sources for this story required anonymity.
"Therefore some banks won't pass the test."
Oh, so it is a farce... and unless it isn't, the dominos will start falling... hmm what to do...
Bank of France Governor Christian Noyer and Sweden's financial watchdog joined peers from Germany, Spain and Austria on Tuesday in saying that everything was fine with their country's banks in the stress test.
But "selective leaks" worked miracles with Wells and Citi... why not in Europe???
While no stress will be applied to German bunds, the stress on sovereign bonds of the southern European countries will be substantial, a source close to the matter said.
Thank heavens the ECB owns them all at this point.
Discussions with German authorities are also still not concluded about the exact number of German banks that will take part in the test.
"We might see NRW bank dropping off the list," a source close to the matter said, adding this would leave Germany with 15 banks taking part.
Yes, it will be unselective, and fully comprehensive.
Altogether, another epic win for transparency and no manipulation.
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