A notable loser today is Germany’s Dax, and within Germany, Deutsche Bank is getting hammered.
Why? Because six German banks including Deutsche reneged on a plans to provide full stress test disclosure, according to CEBS secretary general Arnoud Vossen.
The tests – designed to restore nervous markets’ faith in European banks, shaken by the near-default of Greece this year – were supposed to be accompanied by full disclosure of each bank’s sovereign debt holdings.
But six of the 14 German banks tested – Deutsche Bank, Postbank, Hypo Real Estate, mutual groups DZ and WGZ, and Landesbank Berlin – did not publish the expected detailed breakdown of sovereign debt holdings, although Postbank disclosed some information on Sunday. Every other European bank, bar Greece’s ATEbank, which failed the test, complied with the disclosure requirement.
The exact reason the banks didn’t disclose results is a bit unclear. For now we just know that the market is not fond of this opacity.