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’The not so great European banking recap
Are you confused by the ‘facts’ and figures on the latest bank stress test?
These charts (click to expand) from Morgan Stanley’s Huw Van Steenis should help.
Using reported 2011 core Tier 1 capital,
Taking the stress test to nine (ex-bad stuff)
Just like the good old days. A Pestowire ‘exclusive’ on banking recapitalisations.
From the BBC:
The European Banking Authority is proposing that eurozone banks should hold capital equivalent to between 9% and 10% of their risk-weighted assets,
Bailing out RBS
A predictably furious response from RBS to the FT’s front page splash on Friday.
Via Reuters:
“The design of any new application of the EU stress tests is completely up in the air. Any analysis of how any bank will be affected is nothing more than speculation,”
Something for the EBA
A stress test calculator.
Have a play around. It’s fun and kinda scary.
Bank of Ireland – it lives!
The price action early on Friday morning:
No, that’s not an April fool.
Shares in Bank of Ireland really are trading higher.
And that’s because traders and analysts think there’s still an equity investment case and a chance government ownership can be kept below 50 per cent (if subordinated debt holders to play ball).
Stress test rumourtrage round-up
As we wait for the release of the eagerly-awaited European bank stress methodology – which may or may not be released on Wednesday – here’s a quick round up of the latest rumours swirling the London markets and some snap reaction from Goldman Sachs.
Congressional Oversight Panel says stress tests not stress-y enough
The Congressional Oversight Panel – the body chaired by Elizabeth Warren and which has repeatedly criticised the US government’s handling of the financial crisis – released a report on Tuesday that (shock!) criticised the bank stress tests conducted by the Fed.
US stress test results
Yes, the results of the Supervisory Capital Assessment Program (SCAP) are finally out and you can find them here.
In the meantime here’s a quick summary:
10 of the 19 firms tested need to add $185bn to their capital buffers.
And the results of the US bank stress test are…
We have had the methodology (sort of), now we are starting to get some early leaks results from the US bank stress tests.
And on the face of it they do not look so good for either Bank of America or Citigroup.
Reserves “substantially reduced” at largest US banks, Fed says
Extracts from the Fed white paper on “The Supervisory Capital Assessment Program” regarding the largest 19 banks in the US (hereafter, the stress test):
Losses associated with the deepening recession
Statement: Fed Releases More Stress Test Methodology Details
Any emphasis ours.
Washington, Apr 24 2009 April 24 – The Federal Reserve today released more details about the methodology financial regulators used to run “stress tests” on 19 major bank holding companies to see how they would hold up under varying economic circumstances over the next two years.
Stress test appeal
The US government begins briefing financial institutions on the results of its bank stress tests tomorrow, Friday.
From the New York Times:
Bank executives were notified early this week to prepare for meetings with top regulators at the Federal Reserve Bank in their district.
Stress test results leaked (again)
This time it’s not from a self-proclaimed white supremacist, but the Associated Press news agency.
AP Exclusive: Fed tests harder on regional banks
WASHINGTON (AP) — The government’s “stress tests”
More stress test stress (updated)
Widely derided as a racist crank, former internet talk-jock Hal Turner has seen his claim to having acquired a copy of the US bank stress test results met with scepticism.
His blog post saying the tests show 16 of the top 19 US banks to be insolvent was enthusiastically emailed across dealing rooms on Monday,
Stress testing the stress test reports
The Turner Radio Network claims to have obtained the stress test results for the top 19 banks in the US, which are said to be “very bad.”
1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent.
[Ireland's Bad Bank] AIB: the stress-test arms race?
AIB statement, emphasis FT Alphaville’s:
On 12 February Allied Irish Banks p.l.c. (“AIB”) [NYSE: AIB] announced an agreement with the Irish Government in relation to the proposed recapitalisation of the bank.