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Stress Test Bank in Europe

Hawkeye10

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It’s Not Just Donald Trump and Bernie Sanders—The Whole World Is Turning On Its Elites
U.S. politics and its voters are often insular and inward looking, but right now the same issues Americans care about are creating a firestorm in other parts of the world
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By now, it’s undeniable: America’s frustration with political elites is upending party loyalty. And now, this phenomenon is taking on global proportions.
According to a recent poll, nearly half of Bernie Sanders’ supporters will not vote for Hillary Clinton, while 22 percent are backing Donald Trump. “I’m a registered Democrat,” one respondent explained, “but I cannot bring myself to vote for another establishment politician like Hillary.”
Based on media coverage, it’s easy to label this distaste purely domestic. However, from the UK’s “Brexit” referendum to political movements in France, Italy, and the republic of Georgia, voters have been rising up against an out-of-touch, technocratic elite.

It?s Not Just Donald Trump and Bernie Sanders?The Whole World Is Turning On Its Elites - The Daily Beast

Governments pumping money into the banks because they are scared has consequences, because it is being taken out of the hide of the little people. Their is no place to hide when the global economic system melts down, as it is doing.
 

joG

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Most banks weather the latest stress tests but Monte dei Paschi wiped out while RBS and AIB are hit hard

The world's biggest are repairing their balance sheets to withstand major economic shocks.

I haven't looked at the test myself in detail. What I hear is that it is still like the last ones more to persuade that the situation can be handled than to uncover nastiness. The cases that looked badly were so bad -one was literally bankrupt- that concealment was not an option. It was a surprise even that Deutsche Bank was not denied clearance. I heard that internal stress tests had given rise to grave concern.
 

PeteEU

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I haven't looked at the test myself in detail. What I hear is that it is still like the last ones more to persuade that the situation can be handled than to uncover nastiness. The cases that looked badly were so bad -one was literally bankrupt- that concealment was not an option. It was a surprise even that Deutsche Bank was not denied clearance. I heard that internal stress tests had given rise to grave concern.

Well the stress tests are PR stunts anyways and always have been. US banks go through them also, and funny enough most pass also all the time.. and yet most people know that BoA is in trouble and other banks are not exactly stable either.
 

joG

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Well the stress tests are PR stunts anyways and always have been. US banks go through them also, and funny enough most pass also all the time.. and yet most people know that BoA is in trouble and other banks are not exactly stable either.

I actually performed stress tests on a bank, when I was its treasurer. That was to see, how well we would be able to get by, if push came to shove and had nothing to do with government. What you will find is that the US banks were doing such tests for their own survival purposes long before they were performed in Europe or even London, where they had been being done a while after Americans began them. They were often not effective for the same reasons that the EU present stress tests are not. The persons commissioning them have vested interests in the results.

BTW, the tests after 2008 in the US seemed much more honest than those in Germany that I looked into. But, of course, the technology that the US banks had before the crisis was far superior being maybe 10 years ahead of continental risk management tools and could be adapted quickly to the new challenges.
 

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I actually performed stress tests on a bank, when I was its treasurer. That was to see, how well we would be able to get by, if push came to shove and had nothing to do with government. What you will find is that the US banks were doing such tests for their own survival purposes long before they were performed in Europe or even London, where they had been being done a while after Americans began them. They were often not effective for the same reasons that the EU present stress tests are not. The persons commissioning them have vested interests in the results.

BTW, the tests after 2008 in the US seemed much more honest than those in Germany that I looked into. But, of course, the technology that the US banks had before the crisis was far superior being maybe 10 years ahead of continental risk management tools and could be adapted quickly to the new challenges.

Which is ironic since they refused to implement chip and pin on credit cards in the US for even longer... and their roll out is stalling at best now..
 

joG

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Which is ironic since they refused to implement chip and pin on credit cards in the US for even longer... and their roll out is stalling at best now..

I never followed retail client business that closely. So I cannot really say much about that side of the business and do not know, why the US companies might have disliked that instrument.
 
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