Tuesday, December 07, 2010

Europe Update: More Stress Tests, Iceland out of recession

by Bill McBride on 12/07/2010 01:06:00 PM

From the Financial Times: EU banks face new stress-tests

A new round of co-ordinated stress-tests on European banks would begin in February ... The “scope and methodology” of the new round of tests was still under discussion, [Olli Rehn, EU commissioner for economic and monetary affairs ]said, but should be disclosed fairly shortly.
The last round of stress tests were heavily criticized - and all of the Irish banks passed the tests only to fail a few months later.

And from the NY Times: Iceland Breaks Out of Recession
Iceland broke out of recession in the third quarter of this year, official data showed Tuesday ... Unlike Ireland and Greece ... Iceland allowed private banks to fail, and its currency, the krona, has declined by about 46 percent against the dollar since the start of 2008.
That isn't currently an option for Ireland, Greece, Portugal or Spain ...