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RBS Shares Tumble After Admitting Stress Test "Error"
Dear Mr. Draghi, we are very sorry but we messed up on the 'stress test'. The Royal Bank of Scotland shares are sliding after it admitted that it made an error - not in favor the bank - in its stress test calculations...
*RBS: CET1 STRESS TEST RATIOS OVERSTATED ON CALCULATION ERROR
Under the corrected Adverse Scenario, RBS capital cushion was slashed from 6.7% to 5.7% (just barely above the 5.5% minimum). Still - we should all trust the stress tests as 'proof' how strong Europe's banking system is. What a farce!!
As Bloomberg reports,
Royal Bank of Scotland Group Plc fell as much as 2.9 percent in London trading after the lender said it overstated its capital ratios in European stress tests.
RBS’s fully loaded 2016 common equity Tier 1 ratio, a measure of financial strength, should be 5.7 percent instead of the 6.7 percent reported on Oct. 26, the bank said in a statement today. That’s still above the 5.5 percent minimum, RBS said.
The stress-test modeling “did not adequately reflect” deferred tax asset deductions, RBS said. The bank said it remains “on target” to boost its capital ratio to 11 percent by the end of 2015.
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I'd be buying the shit outta that dip.
Nobody gives a damn about revisions. Especially ones that don't change a damned thing. Frankly, I'd be overjoyed at a lower capital ratio. Lower capital = higher leverage. Just what the doctor ordered.
Must.....Buy.....But Only.....Far HIGHER!
Nail gun/office tower suicide in 3...2...1..
Oh fuckashit !
It's finally here.
The mega-ultra-epic-massive-horrible-pan-global LEHMAN MOMENT II.... The sequel !!!!
We can hope.....
Ooops...
Maybe one day they will just admit they lied.... not today, not tomorrow, probably never
RBS capital cushion was slashed from 6.7% to 5.7%
"on target"
LOL!!!
These guys manage trillions and can't hire a test team that does peer reviews and unit tests.
AH this damn calculator fucked us! Damn you HP! Damn you to HELL!
Maybe they were using Turbo Tax.
It worked for Giethner....
Meh, they're still trading not too far off their 52 week high. Let's talk about Douchebank's slow decent into hell:
http://goo.gl/C6AjlP
I wonder how much capital they are expending to hold $30
just shoot them all.
you make mistake - you go to jail, they make a fraud and got bonuses.
40p is a 'tumble' ?
Clickbait
Ulster bank has huge exposure to the Irish black hole.
They are doing everything in their power to destroy per capita purchasing power but the extraction is quite difficult.
If you look at net inward migration into Ireland it was +100,000 as recently as 2010 (trading economics website)
If that was scaled up to a Uk country it would be 1and a half million per year.
They obviously need to totally destroy us if they are to see a return and that is exactly what they are doing
And things were going sooo well....
The calluses on my right palm are testament to the rigorous stress tests i undertake on a regular basis.
MOAR AND FREQUENT STRESS TESTS ARE THE SOLUTION.
Oh RBS you're such a bunch of no hopers. Why do you employ fat fingered humans?
Right Bunch of Spastics.
FAT FINGERS!!!!!!!!!!!!!!!
Lets see....if one bank committed an 'oopsy' what are the chances that another (or all) did)? After all, isn't this really relying on internally generated information?
Just more BS