They said the news on the stress tests would be officially made public on the 23rd, but the reality seems to be that those banks who are shown to have problems will likely come clean before that.
Reuters is reporting that Germany’s largest banks, Deutsche Bank, Commerzbank and Deutsche Postbank will all get good grades, but that the German landesbank could be in a spot of bother. While expected to pass the test, some estimate they’ll need €31bn in new capital to shore up their position.
It confirms that Hypo Real Estate appears to have failed the test, but calls it a silver lining.
HRE was propped up with more than 100 billion euros ($130 billion) of state aid, and allowing it to fail would bolster the credibility of tests considered by some to be too lenient. Its failure would have limited impact on Germany’s banking system.