News Update Seven European Banks Fail Stress Tests

Description: The Committee of European Banking Supervisors, or CEBS, a group of European Union regulators which advises the European Commission on regulatory issues, has released results of the stress tests on 91 banks representing 65% of the region's banking assets. The CEBS says seven of the 91 banks reviewed "failed" the EU stress tests. The tests are designed to see how a bank's assets and liabilities perform during a simulated period of economic turmoil and whether they hold enough capital to absorb losses and large enough liquidity buffers for them to remain solvent. The IMF stated earlier this week that the tests should provide further stability moving forward, Caroline Atkinson, Director of External Relations for the IMF commented. We will update you on further on what these stress tests mean for the broader economy, as well as how the markets are reacting.