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Just now, the CEBS released details of the European stress tests and they claim they are much more stringent than the U.S. version. At noon, more details will surface. Here’s a quick rundown of the schedule.
- Now: details of the European stress tests
- 12:00 PM ET: The results of the stress tests, including specifics on how the 91 banks performed under each scenario (likely the impact of the test on the Tier 1 capital ratios), will be sumarized by the CEBS.
- 12:30 PM ET: We should see a PDF on the CEBS site with full an extensive details on each bank.
- 1:00 PM ET: Press conference in the London offices of CEBS on the matter.
- Later today: CEBS is pushing for all 91 banks to release information on their sovereign debt holdings, according to The Guardian. This data could provide strength to the tests, if they remain in doubt after the 12 PM EDT details.
Here’s what we know thus far:
- The tests include a projected 6% increase in unemployment, a 20% annual fall in equities in 2010 and 2011, and GDP contraction of 3% over the period from 2010 to 2011.
- Banks are considered failing if their tier 1 capital ratios fell below 6% under any test.
- Respondents to a Goldman Sachs’ survey on the subject see 10 banks failing.
- Santander is the projected winner in the same survey.
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