Germany accused of reneging on bank tests

A

ASusilovic

European regulators have accused Germany and its banks of reneging on a deal to publish full details of sovereign debt holdings, as part of the four-month-long stress test exercise of the country’s banking sector.

In an interview with the Financial Times, Arnoud Vossen, secretary-general of the Committee of European Banking Supervisors, the pan-European banks regulator, said: “We agreed with all supervisory authorities and with the banks in the exercise that there would be a bank-by-bank disclosure of sovereign risks.”

On Friday, CEBS published the results of its stress test exercise, showing seven of the 91 banks tested across the 27 countries of the European Union failed to achieve a tier one capital ratio of 6 per cent once their balance sheets were exposed to a series of macroeconomic scenarios for 2010 and 2011.

The tests – designed to restore nervous markets’ faith in European banks, shaken by the near-default of Greece this year – were supposed to be accompanied by full disclosure of each bank’s sovereign debt holdings.

http://www.ft.com/cms/s/0/22241180-9831-11df-b218-00144feab49a.html

How naive are market players ? Full disclosure of each bank´s debt holdings ? Is this a joke or what ? Vulture hedge funds and bank prop desks just waiting for this sort of information....
 
Thanks for the info. Most news media are trying to supress it. It appears that the test was an effort to generate candidates for mergers or actually to target them rather than being a legitimate test.
 
How typical can you get.... I would not expect any less. When the two faced narcasistic banks show both sides of the coin one will be able to see the actual numbers rather than just a false test. They will probably just go to the Biergarten and talk about their next stupid move after a couple of drinks go down the hatch.

Akuma
 
Quote from ASusilovic:

European regulators have accused Germany and its banks of reneging on a deal to publish full details of sovereign debt holdings, as part of the four-month-long stress test exercise of the country’s banking sector.

In an interview with the Financial Times, Arnoud Vossen, secretary-general of the Committee of European Banking Supervisors, the pan-European banks regulator, said: “We agreed with all supervisory authorities and with the banks in the exercise that there would be a bank-by-bank disclosure of sovereign risks.”

On Friday, CEBS published the results of its stress test exercise, showing seven of the 91 banks tested across the 27 countries of the European Union failed to achieve a tier one capital ratio of 6 per cent once their balance sheets were exposed to a series of macroeconomic scenarios for 2010 and 2011.

The tests – designed to restore nervous markets’ faith in European banks, shaken by the near-default of Greece this year – were supposed to be accompanied by full disclosure of each bank’s sovereign debt holdings.

http://www.ft.com/cms/s/0/22241180-9831-11df-b218-00144feab49a.html

How naive are market players ? Full disclosure of each bank´s debt holdings ? Is this a joke or what ? Vulture hedge funds and bank prop desks just waiting for this sort of information....
More...

Good info.. Thx for posting!

Rick
 
Firstly, they're likely to bow to the pressure and disclose their holdings some time soon. Secondly, we're talking about 7 German banks, of which one is Deutsche and the other is Hypo Re. Hypo Re is already nationalized. If you think Deutsche has a problem, you might as well run for the hills now. Thirdly, don't you think it's possible that they don't wanna disclose, because they're actually short Greece and other periphery sovs? At any rate, I don't think there's any grand conspiracy here. However, it does make CEBS look rather ineffectual and powerless. That's the biggest takeaway for me, personally.
 
The outlying nations are assisting in filling the trillion dollar trench. A smooting of capital is in the works so that there is no major disruption in the global economy. It is mererly another stall tactic.

Akuma
 
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