13 Europe banks flunk test, must find 10B euros
Source: AP-Excite
By DAVID McHUGH
FRANKFURT, Germany (AP) The European Central Bank says 13 of Europe's 130 biggest banks have flunked an in-depth review of their finances and need an extra 10 billion euros ($12.5 billion) to cushion themselves against any future crises.
Although the landmark review identified only a handful of weak banks, ECB officials said Sunday that it was tough enough to ensure Europe's banks will be purged of the bad investments that have made some of them hold back on lending.
That means the banks will be ready to lend to businesses when the economy finally picks up, they said.
"The results guarantee that going forward the economic recovery will not be hampered by credit supply restrictions," said ECB Vice President Vitor Constancio.
FULL story at link.
FILE - The new headquarters of the European Central Bank (ECB), building at right, under construction on the water front of the River Main in Frankfurt, Germany, in this Sept. 24,2014 file photo. The European Central Bank said Sunday Oct. 26, 2014 that 13 of Europe's 130 biggest banks have flunked an in-depth review of their finances and must increase their capital buffers against losses by 10 billion euros ($12.5 billion). (AP Photo/Michael Probst, File)
Read more: http://apnews.excite.com/article/20141026/eu--europe-banks_test-f67faaf777.html
RufusTFirefly
(8,812 posts)dixiegrrrrl
(60,010 posts)which means buying up the banks' bad debts, in a desperate attempt to avoid implosion.
did not work here, won't work there.
Essentially what we are seeing is warnings of another collapse.
AndyTiedye
(23,500 posts)Are they trying to tell us something?