It is hard to envisage a less propitious climate for equity analysis than a gloomy outlook for advanced economies combined with sustained and severe market volatility.
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Europe’s top banking regulator has started to re-examine the strength of the region’s banks, modelling a big writedown of all peripheral eurozone sovereign debt, reported the FT.
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Eight banks, including two Greek banks, five Spanish and one Austrian banks have failed the European Banking Authority stress tests, the agency said on Friday.
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European banking stress tests will be a missed opportunity for policymakers to reassure markets unless they come down heavily on undercapitalized banks, analysts and investors told CNBC.com.
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As many as six Spanish banks have failed the European stress tests, including five savings banks and one medium-sized bank, ABC newspaper reported on Tuesday, citing unnamed sources.
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Europe’s banks are growing increasingly angry over the stress tests being run by European regulators, complaining that the process has been excessively rigid, with damaging changes to the exercise rushed through at the last minute, reported the FT.
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