RGE on the European Bank Stress Tests

We've been digesting the results of European bank stress tests, which appear to have made neither markets nor analysts less stressed. According to the Committee of European Bank Supervisors (CEBS), only seven banks failed to pass muster out of the 91 tested. The CEBS also announced on July 23 that the recapitalization needs of the failures—five Spanish cajas, Germany's Hypo Real Estate (HRE) and Greece's ATEbank—amounted to €3.5 billion (US$4.5 billion).