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CEBS Releases Details On Stress Tests For 91 Banks, Adverse Scenario Assumes 3% Cut Vs GDP Forecast, Cajas To Be Included
The Council of European Banking Supervisors has released the much anticipated detail on the stress test farce, whose results are to be announced on July 23. On the most relevant topic of sovereign impact, here is what the press release says: "The sovereign risk shock in the EU represents a deterioration of market conditions as compared to the situation observed in early May 2010." In other words there is no detail whatsoever and once again it is more than likely that not even JPM's downside expectation of a 25% haircut on Greek bonds will be met. Since "early May" excludes those days right after the $1 trillion bailout package, when spreads actually got even worse, to say that this will be an objective test is, as usual, a Tim Geithner inspired joke. Interestingly, the CEBS will include Spain's Cajas clusterfuck in the test, which puts the last nail in the coffin of any credibility this test may have had, as an objective analysis will promptly result in the shuttering of over 40% of Spanish lenders, as we discussed previously. As for the core assumption: "On aggregate, the adverse scenario assumes a 3 percentage point deviation of GDP for the EU compared to the European Commission’s forecasts over the two-year time horizon" we wonder whether this will also account for the fudged GDP numbers previously presented to Eurostat, courtesy of Goldman Sachs' financial innovation division.
Full press release
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Stress, bitchez
Is this why the market is going parabolic?
No. This is why:
Really? Really?! Thanks for the analysis TheStreet.com...
yeah, here's your chance to front-run the upcoming stellar earnings season
man, I need to get me a job there so I can just make shit up and get paid - well, there or the Fed - ha!
The rest of the world is watching the game. Germany vs. Spain: 0 - 0 at the half.
The only players left in the market are the corrupt Gangs of New York with their High Frequency Trading (HFT) Scam Bots.
No wonder the DOW is up 200. Unfettered corruption … NYC style.
+2% low volume melt up, bitchez
Lets get real. The reason they don't want to tell what we really need to know to make a decision is because the information is really, really, really bad (matter of fact it is the same in the USA). By the regulators not telling us the truth and then using half-baked numbers (which all stupid analyst and investors want to believe even though they know they are not correct) is completely insane and completely anti-fiduciary in nature. In my mind anybody who has money run by fools who invest on this nonsense and lose money should be sued out the ass for breach.....but then again you'd have to be a fool to let them invest your money in the first place.
The regulators have a fiduciary duty to The Owners.
We, the chattel, get a polite smile and a kindly pat on the head.
It is completely sane.
It is true that not grasping this and choosing to believe the high school Unicorn and Skittles fairytale is very hard on the noggin.
Worked in the USA for a 60% run up in bank and all other stocks... why wouldnt it work there?
/sarcasm lightly used...
CheapKUNGFU
The issue is beyond what the stress tests tell us. The issue is what happens afterwards. Do TPTB then put on the same road show that they did here in the U.S. and get the mullets to buy equity in these bankrupt houses of trash? Will people be stupid enough to buy into the charade? I'm sorry to say that they probably will.
If they can flog a piece if crap like Tesla, a Caja will look good by comparison.
You got something against mullets?
"The objective of the extended stress test exercise is to assess the overall resilience of the EU banking sector and the banks’ ability to absorb further possible shocks on credit and market risks."
The sole objective of these tests is to provide the "Illusion of Credibility".
I am sure their banks just got permission to do mark-to-unicorn as to be perceived as "healthy", just as our banks have been allowed to do. Such an easy fix by just suspending a GAAP rule to help create jobs and growth........
What's up with Melissa Francis today???
Man, did she grow some huge milk plants or what??
Here's a photo from the good old days when the Dow was 14,000
LOL....
Today, she looked like she could feed her kids through college...
Could not find a current video feed or photo...
And now I'm noticing that Amanda Drury is wearing some funky tie-die top, and her arms are blowing out to super-sized KFC drumsticks...
WTF???
Can't the casting directors at CNBC put her on a freaking crash diet??
Your answer to the beewbs question is:
http://www2.victoriassecret.com/commerce/onlineProductDisplay.vs?namespa...
I need to learn how to post pics here....
You can't post pictures unless you're a contributor or Tyler and Company.
ah fair enough..
Ok, i've decided i can't put it off any longer - here it is ...
Scary DOW monthly chart.
http://stockmarket618.wordpress.com
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