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Thread: The Eurozone Bank Stress Tests are a farce: AIB and BoI set to pass

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    Default The Eurozone Bank Stress Tests are a farce: AIB and BoI set to pass

    This is beyond a joke. THese rancid corporations wouldn't pass a treadmill at 1 mph stress test they are that ill, but not in the world of the Eurocrats. Just keep them open and extracting the real wealth from the people and feed our interest of the bloated ECB balance sheet.

    At least we know for sure the whole thing is a con.

    Bank of Ireland, Allied Irish Said to Pass EU?s Stress Tests - Bloomberg.com
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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    Politics.ie Member A view from England's Avatar
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    Quote Originally Posted by Cassandra Syndrome View Post
    This is beyond a joke. THese rancid corporations wouldn't pass a treadmill at 1 mph stress test they are that ill, but not in the world of the Eurocrats. Just keep them open and extracting the real wealth from the people and feed our interest of the bloated ECB balance sheet.

    At least we know for sure the whole thing is a con.

    Bank of Ireland, Allied Irish Said to Pass EU?s Stress Tests - Bloomberg.com
    http://www.bbc.co.uk/blogs/thereport..._for.html:lol:

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    The European stress tests require Tier 1 capital of 6%. Elderfield has insisted on AIB and BOI having 8% by January 1, 2011.

    It's no surprise they'll pass - the stress tests don't appear to be too stressful!

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    Quote Originally Posted by Cassandra Syndrome View Post
    This is beyond a joke. THese rancid corporations wouldn't pass a treadmill at 1 mph stress test they are that ill, but not in the world of the Eurocrats. Just keep them open and extracting the real wealth from the people and feed our interest of the bloated ECB balance sheet.

    At least we know for sure the whole thing is a con.

    Bank of Ireland, Allied Irish Said to Pass EU?s Stress Tests - Bloomberg.com
    have they not passed these already?? did they not pass something last week? some form of stress test?

  5. #5

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    Quote Originally Posted by grafter1 View Post
    The European stress tests require Tier 1 capital of 6%. Elderfield has insisted on AIB and BOI having 8% by January 1, 2011.

    It's no surprise they'll pass - the stress tests don't appear to be too stressful!
    In my opinion the only ratio that counts is the Texas ratio. The BIS Tier mallarkey can still allow toxic assets.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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    Quote Originally Posted by A view from England View Post
    What he's talking about there is exposure to greek sovereign debt, which AIB and BOI have little if any exposure to.

    CS Tier 1 is hard cash. It can't be "toxic" assets.

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    Politics.ie Member controller's Avatar
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    Quote Originally Posted by Cassandra Syndrome View Post
    In my opinion the only ratio that counts is the Texas ratio. The BIS Tier mallarkey can still allow toxic assets.
    I had to check what this is

    The Texas Ratio is a way to measure how risky a bank is. The formula tells you how likely the bank is to be dragged down by bad loans. By looking at Texas Ratios, you may be able to spot banks that are more likely than others to fail.

    Texas Ratio - How the Texas Ratio Bank Rating Works
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    let's just wait and see what the tests say, shall we? sheesh
    “'retail deposit flight, I don't see that as a great danger. Ireland is an island” - Brian Lenihan - to hundreds of international investors

  9. #9

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    Quote Originally Posted by orbit View Post
    What he's talking about there is exposure to greek sovereign debt, which AIB and BOI have little if any exposure to.

    CS Tier 1 is hard cash. It can't be "toxic" assets.
    Tier 1 is core capital and not mere cash. There are different weights involved. Unsecured loans are 100%, mortgages are 50%, Bonds are 25%. So if the test is 6%, then mortgages a lot of which are toxic require just 3% core capital.

    As for hard cash ratios, fractional reserve banking used to based upon 10:1 deposit: cash ratio, most banks range from 20 uo to 130:1.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

  10. #10

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    Quote Originally Posted by Cassandra Syndrome View Post
    This is beyond a joke. THese rancid corporations wouldn't pass a treadmill at 1 mph stress test they are that ill, but not in the world of the Eurocrats. Just keep them open and extracting the real wealth from the people and feed our interest of the bloated ECB balance sheet.

    At least we know for sure the whole thing is a con.

    Bank of Ireland, Allied Irish Said to Pass EU?s Stress Tests - Bloomberg.com
    Cass don't you see, that proves the stress test has failed when the likes Of AIB and BoI pass.
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