Long-awaited financial-system stress tests showed Thursday that the European Union's top 22 banks could survive a potential â¬400 billion, or $585 billion, in credit losses this year and next if the region's economy deteriorates more than expected. In an upbeat interpretation of the exercise, finance ministers from the 27-nation bloc said the tests showed the large banks had sufficient capital to handle "a severe macroeconomic deterioration." The seemingly soothing report feeds into tension between EU and U.S. policy makers over whether or not European banks are sufficiently capitalized to support an economic recovery. The U.S. thinks European banks need more ... http://online.wsj.com/article/SB125440913826956487.html
The stress tests represent 'an assured all-clear.' Axel Weber, Germany's central bank chief Whew, I think we're out of the woods. Weber just sounded the all clear