quote:
Reuters
Oct 22, 2014 715am

LONDON, Oct 22 (Reuters) - Pimco's head of global banking, Philippe Bodereau, said he expects 18 banks to fail a stress test of regional lenders when results are published by the European Central Bank on Sunday.

Bodereau, who runs $4.3 billion in the Pimco GIS Capital Securities Fund, said the failures would likely include some German and Austrian cooperative and public sector banks, as well as weak regional lenders in the periphery.

Given recent market volatility, he said it was more likely there would be a positive than negative shock after the results are released, and added that he did not expect to see any big rights issues as a result of the euro zone tests.

LINK

Higher than the 10-14 predicted elsewhere. I guess the key will be any shockers coming out of Germany or France.

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Posted by Cmlsu5618

Destin, FL

Member since Sep 2010

3763 posts

Posted on 10/22/14 at 7:19 am to NC_Tigah

I don't know what this means for the German Index.. but shite can it continue to drop?

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Posted by BennyAndTheInkJets

Middle of a layover

Member since Nov 2010

5593 posts

Posted on 10/22/14 at 9:57 am to Cmlsu5618

The DAX bottomed out around 8600. With the ECB actually putting their money where their mouth is with the covered bond buying program, the market will shrug off the bank results. In fact if the bank results are a lot worse (20+ failures) that'll likely be even more bullish sentiment for European equities since the ECB will likely have to act more.

The key will be how much policy dysfunction is in the media for Europe. Although people make fun of how dysfunctional US policy is, take that and multiply it by 17 and you have the European Union.

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Posted by NC_Tigah

Carolinas

Member since Sep 2003

123778 posts

Posted on 10/22/14 at 1:50 pm to BennyAndTheInkJets

quote:
With the ECB actually putting their money where their mouth is with the covered bond buying program, the market will shrug off the bank results. In fact if the bank results are a lot worse (20+ failures) that'll likely be even more bullish sentiment for European equities since the ECB will likely have to act more.

Interesting. Thanks.

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