The European bank stress test has already proven a huge success. This is unlike the US version, which in retrospect didn’t even begin to identify any real problem, functioning as nothing more than the standard Ministry of Truth line of "move on, nothing to see here."

No, I’m not saying the European version has more truthfulness to it, as it even overtly ignores the foremost issue, sovereign risk, but it has proven to be a huge help in identifying troubled banks. How does it do this? Just watch who objects to the publication of results.

Complete Story »
Go to Source