USA Today
July 26, 2010
Europe's hopes of moving beyond the debt crisis that has shadowed its financial system for months take center stage today.
Following the results of an unprecedented stress test of banks in 20 countries, which were released after Friday's European markets close, officials will be watching for investors' verdict. Despite lingering questions about its rigor, the exercise could clear away obstacles to renewed credit flows and give a lift to a nascent European economic recovery.
"If there's greater confidence in the financial system, the individual banks don't need to be as careful about protecting their capital. They can take chances and make loans they otherwise might not have made," said Douglas Elliott, a former investment banker with JPMorgan now with the Brookings Institution.
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