European Bank Stress Tests Will Conveniently Ignore The Possibility Of A Sovereign Default

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As if te European bank stress tests weren’t already considered to be something of a joke.

According to MNI, citing an unspecified German paper, banks will only be stress-tested to a degree that assumes ongoing challenges in the European sovereign bond market. But the possibility of a sovereign default — which more and more people are assuming is actually likely in Greece — will not be included.

This news follows recent reports that banking regulators are basically having banks self stress-test, letting bankers scribble up their own “worst case scenario.”

The full slate of stress test paramaters are scheduled to come out today

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