EU banks pass stress test
Major European banks won an all-clear Thursday from a stress test by financial supervisors that showed none of them would collapse if the economy worsens. European Union finance ministers and central bankers said in a statement that the bloc's 22 biggest banks were likely to face an extra €400 billion ($581.5 billion) in losses this year and next year if economic output fell below recent forecasts — but none would go under. "Large banks appear sufficiently capitalized to head off a severe macroeconomic deterioration," they said after talks in Goteborg, Sweden.
The head of the European Central Bank, Jean-Claude Trichet told reporters that "our system is resisting in a way that is reassuring." Germany's top central banker, Axel Weber, described the test as giving banks "an assured all-clear."
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