Hypo Real Estate Said To Fail Banking Stress Test
The bank that has been bailed out a hundred times before is, shockingly, rumored by Bloomberg to not pass the stress test. In other news, all Greek banks are doing swell for now.
More from Bloomberg:
Hypo Real Estate Holding AG, the German lender taken over by the government following the financial crisis, failed a Europe-wide banking stress test, two people familiar with the results said.
Hypo Real Estate didn’t pass a stress scenario on its capital that assumes an economic slowdown and sovereign-debt losses, said the people, who declined to be identified before an announcement on July 23. An official at Munich-based Hypo Real Estate declined to comment.
European Union regulators are examining the strength of banks as they seek to reassure investors about the firms’ resilience to potential losses amid the region’s sovereign-debt crisis. The tests are being applied to 91 of Europe’s biggest banks, including 14 German lenders.
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