Whatever happened the banking "Stress Tests"?

Podolski1.5

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Earlier this year much play was being put on the fact that the two largest Irish banks had passed so-called Stress Tests or criteria laid down by the European Central Bank which they would have to pass in order to have a future.

http://www.irishtimes.com/newspaper/breaking/2010/0723/breaking13.html


Welcoming the announcement that the AIB and Bank of Ireland had passed the "stringent" tests, Minister for Finance Brian Lenihan is quoted as saying the two mains banks passed because of “decisive and prompt action taken earlier this year”.

Lenihan also said: “Today’s results vindicate the capital levels set by the Financial Regulator and the Central Bank following its prudential capital assessment review last March.

Ireland's Financial Regulator Matthew Elderfield was reported as describing the test was set at “a severe stress level” and it is "therefore consistent with our earlier exercise that the Irish banks have achieved the target level of capital in the EU process".

If these had been medical cardiac stress tests the patient would be dead by now.
 
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enby

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Jul 11, 2006
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And people wonder why "the markets" don't believe a word from official sources??
 


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