Stress Test 2 Results Are Out: 8 Banks Fail - 5 Spanish, 2 Greek, 1 Austrian

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Fri, 07/15/2011 - 12:04 | 1459777 TradingJoe
TradingJoe's picture

...and the algos go crazy :))

Fri, 07/15/2011 - 14:46 | 1460397 Highrev
Highrev's picture

Nothing like old news, and old bad news to boot.

Let's try again.

How about scratching, as in below the surface?

Something like the ONE Spanish bank (the other four were low end "Cajas") that didn't make it because some convertible bonds weren't included in the analysis (which means that ONE Spanish bank really passed . . .).

Or how about the fact that 95% of the Spanish banking system was examined, while in Germany that figure was around 60% (ahem, which means that 40% of the German financial is a big fat N/A).

Or how about . . .

There's a shitload of real news out there if you bother to get off your ass (that's not directed just to ZH, rather it goes to all you oh-so-well informed readers - how in the hell do you make investment decisions with the horrible information you have, I'll never know - and the the rest of the U.S. bloggers/media/general populace/etc. How can you settle for such superficial crap?

Fri, 07/15/2011 - 19:25 | 1461195 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

What is the ratio of Banks to Cajas? Are Cajas backed stopped by the banks?

Fri, 07/15/2011 - 12:05 | 1459779 bigwavedave
bigwavedave's picture

hooray! viva le banque! lez bitchez

Fri, 07/15/2011 - 12:05 | 1459780 equity_momo
equity_momo's picture



how tense.

Fri, 07/15/2011 - 12:06 | 1459786 Hondo
Hondo's picture

These guys just can't stop lying.  No one except the robots, and even they are having doubts, believe a word they say.....

Fri, 07/15/2011 - 12:47 | 1459978 carbonmutant
carbonmutant's picture

Landesbank Hessen-Thueringen, known as Helaba, refused to allow the EBA to release its stress-test data

The European Union plans to force banks to disclose how they fare in future stress tests to prevent any repeat of the last-minute withdrawal of Germany’s Landesbank Hessen-Thueringen from this year’s exams.

Fri, 07/15/2011 - 12:07 | 1459793 firstdivision
firstdivision's picture

Lulz!  Not one single Italian bank.  This thing is so freaking hilarious that I would be laughing if it wasn't so terrible executed.  For the countries they listed, one must remember to apply the times 2 rule to actually give the results some credibility.

Fri, 07/15/2011 - 12:10 | 1459812 Ghordius
Ghordius's picture

Credibility? You can't trade credibility, therefore credibility is irrelevant.
Now, if you would offer complex options on it, then you could....

Fri, 07/15/2011 - 12:38 | 1459945 Greater Fool
Greater Fool's picture

A whole new interpretation for the BS PDE!

Fri, 07/15/2011 - 13:15 | 1460084 Mactheknife
Mactheknife's picture

If you havn't seen this yet...sums it up in 2.5 min...and it's a riot!

Fri, 07/15/2011 - 14:49 | 1460404 Highrev
Highrev's picture

Or maybe the credibility problem belongs to the loser U.S. rating agencies and those who pay attention to them?

Get with it people. You're on a sinking ship, and its name isn't Europe.

Fri, 07/15/2011 - 12:07 | 1459795 Quintus
Quintus's picture

The Euro politicians are sticking faithfully to Goebbels' dictum about telling a lie big enough and repeating it often enough.  They seem remarkably unaware that the vast gulf between reality and the picture they are trying to paint is plainly visible to all, and they are just making themselves look ridiculous.

Fri, 07/15/2011 - 12:08 | 1459802 oogs66
oogs66's picture

good one

Fri, 07/15/2011 - 12:08 | 1459796 Ghordius
Ghordius's picture

Hate me if you want, I still say that the Bank Bailout Age in Europe is over.

The risk is not on the EUR, it's on the banks. Yes, this means bank runs in the EU, eventually...

Fri, 07/15/2011 - 12:14 | 1459828 equity_momo
equity_momo's picture

G , you are not wrong. But dont limit the bank runs to EZ.  Youre going to see GLOBAL , yes GLOBAL panic on deposits.  Those who dont panic in time will find out just what happens to depositors in a ponzi scheme.  Once the capital controls go into full retard mode it will be too late to get onto a lifeboat.

Fri, 07/15/2011 - 12:09 | 1459805 TradingJoe
TradingJoe's picture

"They" would never let ANY "Important" bank fail! No! Never! Hehehhe:))))))))

Fri, 07/15/2011 - 12:09 | 1459808 Sofa King
Sofa King's picture

...imagine if us poor, broke US taxpayers didn't flood the Eurotrash Bins, I mean banks with 850 Billion Dollars.

Fri, 07/15/2011 - 12:15 | 1459836 Ghordius
Ghordius's picture this the moment to beg you to give us Timmy and the Bernank?

Please send them over on this side of the pond, pretty please...?

Fri, 07/15/2011 - 12:29 | 1459898 Ghordius
Ghordius's picture

...wait, my medication is not working anymore.

Here's the deal: keep them and we will send you a 850 quadrillions USD in ten years.

Fri, 07/15/2011 - 12:31 | 1459903 Sofa King
Sofa King's picture

Yea, get back on that medication of yours.

Fri, 07/15/2011 - 12:09 | 1459809 ZeroPower
ZeroPower's picture

Fx in the EUR - selling the news

Fri, 07/15/2011 - 12:10 | 1459813 Mongo
Mongo's picture

The farce is strong with this one...

Fri, 07/15/2011 - 12:10 | 1459816 TaxSlave
TaxSlave's picture

What a beautiful outfit the Emporer has!!

Fri, 07/15/2011 - 12:27 | 1459888 Larry Darrell
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He was born with it.

Fri, 07/15/2011 - 12:11 | 1459821 Atomizer
Atomizer's picture


IMF Note on Global Economic Prospects and Policy Challenges.

  • The risks of not resolving the Greek crisis are severe. A greater sense of urgency is needed to address the crisis and reduce the risks of contagion.
  • Progress on financial sector repair and reform has been too slow, and policy initiatives are urgently needed to make financial systems resilient to new systemic shocks.
  • Advanced G-20 economies need to put in place credible medium-term fiscal consolidation that balances short-run growth fragility with fiscal sustainability. Monetary policy should support fiscal adjustment and stay accommodative where there is economic slack.
  • In emerging G-20 economies, more rapid macroeconomic policy tightening and demand rebalancing is needed in some cases. Pragmatic use of macroprudential tools may be needed to manage large capital inflows.


    Fri, 07/15/2011 - 12:13 | 1459822 YesWeKahn
    YesWeKahn's picture

    If this is not stressful, why call it a stress test?

    Lets call it comfort test.

    Fri, 07/15/2011 - 12:12 | 1459823 firstdivision
    firstdivision's picture

    Well that was easy to show the problem, per the report above

    The scenario includes a sovereign stress,with haircuts applied to sovereign and bank exposures


    Since when did anyone have to take a haircut?

    Fri, 07/15/2011 - 12:14 | 1459831 gwar5
    gwar5's picture

    Reggie Middleton's suggestion that these stress tests will prime the Old World for a first ever pan-Euro bank run may be correct. A slow motion bank run is happening anyway.

    Fri, 07/15/2011 - 12:16 | 1459838 Marge N. Callz
    Marge N. Callz's picture

    It's all candy canes and rainbows. Time to saddle up the unicorn and ride the wave of euphoria.

    Fri, 07/15/2011 - 13:00 | 1460029 Almost Solvent
    Almost Solvent's picture

    Nice username.

    Hugh Jazz
    Mike Hunt
    Mike Hock
    Anita Blochob
    Iwe Toddid

    Fri, 07/15/2011 - 13:19 | 1460100 SamuelMaverick
    SamuelMaverick's picture

    Don't forget the sunshine, flowers, sparkling spring water , and the girls dancing in the grassy fields with a soft gentle breeze blowing up their skirts. I cant believe that the shit is hitting the fan all at the exact same time in Europe and in the US.

    Fri, 07/15/2011 - 12:24 | 1459870 Dick Darlington
    Fri, 07/15/2011 - 12:16 | 1459841 carbonmutant
    carbonmutant's picture

    Fortunately the tests takers didn't account for what might happen if  Greece  or another Euro-zone country defaults on its debts.

    Fri, 07/15/2011 - 12:17 | 1459843 RobotTrader
    RobotTrader's picture

    Why aren't European stocks lock limit down?

    Fri, 07/15/2011 - 12:19 | 1459853 Quintus
    Quintus's picture

    Because it's Friday evening and the exchanges are all closed?

    Fri, 07/15/2011 - 12:24 | 1459869 Ghordius
    Ghordius's picture

    News that could "distort" the markets in Europe are usually given after the exchanges are closed.

    Fri, 07/15/2011 - 12:25 | 1459877 Quintus
    Quintus's picture


    Fri, 07/15/2011 - 12:19 | 1459854 carbonmutant
    carbonmutant's picture

    Mild Cognitive Impairment...

    Fri, 07/15/2011 - 12:22 | 1459862 The Axe
    The Axe's picture

    ALL the irish banks passed the first stress test....joke...Robot....please....get a fucking grip....Not one bank in Portugal fucking kidding me....

    Fri, 07/15/2011 - 12:22 | 1459864 The Axe
    The Axe's picture

    ALL the irish banks passed the first stress test....joke...Robot....please....get a fucking grip....Not one bank in Portugal fucking kidding me....

    Fri, 07/15/2011 - 12:25 | 1459881 equity_momo
    equity_momo's picture

    Because youre short?

    Fri, 07/15/2011 - 12:29 | 1459899 SheepDog-One
    SheepDog-One's picture


    Fri, 07/15/2011 - 12:18 | 1459851 Dr. Engali
    Dr. Engali's picture

    I don't need a test to tell me I'm under stress.

    Fri, 07/15/2011 - 12:22 | 1459860 LaLiLuLeLo
    LaLiLuLeLo's picture

    rating absolute shit AAA. Now that's credibilty

    Fri, 07/15/2011 - 12:22 | 1459861 equity_momo
    equity_momo's picture

    So hands up  who wants to buy into the 2.5bil Euro of rights issues coming out of BK EZ banks?  How tempting!

    Fri, 07/15/2011 - 12:25 | 1459874 lieutenantjohnchard
    lieutenantjohnchard's picture

    indeed, the stress tests are farce. glad i ramped up with bullion purchases of silver and gold on the pull back and retrace. helps sleep easier at night.

    Fri, 07/15/2011 - 12:27 | 1459890 carbonmutant
    carbonmutant's picture

    So much for the stress test rally.

    Fri, 07/15/2011 - 12:30 | 1459894 speconomist
    speconomist's picture

    Unnim, Caja3, Banco Pastor, CatalunyaCaixa and CAM (yes, as in cam) were the Spanish banks and saving banks which failed the stress tests.


    Edit: Seems that Tyler edited the post already with all the info.

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