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

Tyler Durden's picture

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TradingJoe's picture

...and the algos go crazy :))

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?

fxrxexexdxoxmx's picture

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

bigwavedave's picture

hooray! viva le banque! lez bitchez

equity_momo's picture



how tense.

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.....

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.

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.

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....

Greater Fool's picture

A whole new interpretation for the BS PDE!

Mactheknife's picture

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

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.

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.

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...

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.

TradingJoe's picture

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

Sofa King's picture

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

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...?

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.

Sofa King's picture

Yea, get back on that medication of yours.

ZeroPower's picture

Fx in the EUR - selling the news

Mongo's picture

The farce is strong with this one...

TaxSlave's picture

What a beautiful outfit the Emporer has!!

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.


    YesWeKahn's picture

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

    Lets call it comfort test.

    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?

    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.

    Marge N. Callz's picture

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

    Almost Solvent's picture

    Nice username.

    Hugh Jazz
    Mike Hunt
    Mike Hock
    Anita Blochob
    Iwe Toddid

    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.

    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.

    RobotTrader's picture

    Why aren't European stocks lock limit down?

    Quintus's picture

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

    Ghordius's picture

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

    carbonmutant's picture

    Mild Cognitive Impairment...

    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....

    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....

    Dr. Engali's picture

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

    LaLiLuLeLo's picture

    rating absolute shit AAA. Now that's credibilty

    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!

    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.

    carbonmutant's picture

    So much for the stress test rally.

    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.