Stress tests of Europe's finances finds most major banks in good health

Washington Post
July 24, 2010

A broad probe into the health of Europe's financial sector found virtually every major bank in the region fit to withstand severe economic shocks and declared only a handful of smaller institutions at risk.

The long-awaited tests were aimed at assuaging fears of a European banking crisis. The Europeans followed in the footsteps of U.S. officials who last year conducted probes into the health of American banks, forcing almost half of those examined to beef up reserves. Just as the U.S. banks suffered from piles of bad debt from mortgage-backed securities and other credit-bubble excesses, banks in Europe have come under scrutiny for their holdings of government bonds from near-bankrupt nations such as Greece.

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