The stress tests are set so low and are missing the most key in todays market with sovereign debt. Still some banks across Europe has failed. What good are these tests and do they tell us anything about the ability of the Banking system to cope with similar
dramatic events we have seen in the past few years?
Markets falling 15% is pretty modest it would seem to me and hardly builds much confidence. Who could gain any confidence in Banks with such easy tests to achieve? Still some have failed so i guess that says something about Banks
If these tests are worth anything they must be set at a tough level with the most extreme circumstances. If banks fail the tough tests then we at least know who they are and somthing could be done. At least these failed banks could be stopped from engaging
in risky business. Was that not the point?