Europe Gets Giddy Over Friday's Release Of The Stress Tests

Merkel Sarkozy

Photo: AP

One day ahead of the release of the European bank stress tests, the presumption is that they’ll all be A or A+ students.From the point of view of regulators, the goal — showing that the banking system is adequately capitalised, or at least can be with a bit of capital raising — will be met.

FT Alphaville has a nice roundup of the various rumours out there, the most notable being that all the French banks will do very well. Also, apparently, the results will be released during the European trading day, which suggests that regulators want the stress tests to impact results.

Anyway, the rumours are all basically positive and helping to explain, in part, the rally seen in the last hour.

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