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Monte Paschi Fails European “Stress Test” Meant To Restore Confidence In Europe’s Struggling Banks

http://www.express.co.uk/news/world/688424/Struggling-Italy-banks-could-spark-financial-crisis-EU-refuses-to-help

If Italian banks fall, French and German banks are toast. The EU and Eurozone will collapse. Click on image for article.

  • Monte Paschi Fails European “Stress Test” Meant To Restore Confidence In Europe’s Struggling Banks
    by Tyler Durden, http://www.zerohedge.com 
    Moments ago, the European Banking Authority published the 2016 bank stress test results, whose purpose – as every other year –  is to inspire confidence in Europe’s struggling banks; it differs from a market-based assessment of bank stress – that particular “test” can be seen by observing the stock prices of such giant banks as Deutsche Bank and Credit Suisse, both of which recently hit all time lows.

    As previewed yesterday, Italy’s 3rd largest, and most insolvent bank, Banca Monte di Siena was the worst performer in European regulators’ stress tests, and the only lender to have its capital wiped out in the exam.  According to Bloomberg, Monte Paschi’s common equity tier 1 capital ratio, a key measure balance sheet strength, would to a negative 2.2% in an adverse economic scenario, the test revealed, which put lenders through a simulation of a severe recession over three years. Another Italian bank, UniCredit, would see its ratio fall to 7.1% , the second-worst result of the five Italian lenders being examined.

    Needless, to say, the test – as structured – was a farce from the beginning as it did not account for negative interest rates, something Europe has trillions of, nor did it test for Brexit. Finally, the test did not include any banks from Greece of Portugal, where virtually all banks are currently insolvent.

    read more.
http://www.express.co.uk/finance/city/686853/Italy-s-deepening-banking-crisis-could-rip-the-eurozone-apart-warn-experts

Click on image for article.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12111265/Is-Italy-the-next-Greece.html

Click on image for article.

http://www.express.co.uk/finance/city/641080/European-banks-heading-for-collapse-warns-expert

Wakey! Wakey! Global economic, financial and currency crisis may be delayed but it is rapidly approaching. Got physical gold/silver yet? Click on image for article.

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July 30, 2016 - Posted by | Economics | , , , , , ,

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