At least 50 out of 91 European banks could fail a revised regulatory stress test and suffer a capital shortfall of 139 billion euros, Goldman Sachs said and downgraded Germany's Commerzbankand Spain's Banesto to "neutral." The shortfall could be as high as 298 billion euros if the European Banking Authority (EBA) sets the core Tier 1 capital ratio at the high-end of 9 percent instead of 7 percent, Goldman said, and cut price targets on banks citing credit losses from exposure to sovereign debt and likely recapitalizations.
THE POLITICIANS ARE TRYING, BUT ALL THEY HAVE REALLY DONE TO DATE IS ISSUE ROSY-SOUNDING PR STATEMENTS EVERY WEEK.
THE HEAVY-LIFTING AND TOUGH DECISIONS HAVE YET TO BE MADE. AND MOGHT NOT BE. TIKE IS RINNING OUT. SOON CHINA'S BUBBLE WILL BURTS AND THEN: ALL BETS ARE OFF.
STAY TUNED...
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