Seeking Alpha

More from Europe's banking stress tests: Aside from eight that flunked, another 16 (seven more...

More from Europe's banking stress tests: Aside from eight that flunked, another 16 (seven more in Spain) "narrowly" passed (5-6% capital ratio). The tests were almost preordained for a "strict" reputation - but if the big three Irish banks (which scrambled for capital after last year's passing grades) made the grade "comfortably," just how tough were these exams? Euro now +0.09% against dollar; AIB +6.1%; IRE +17.2%.
Comments (3)
  • anomaly1
    , contributor
    Comments (950) | Send Message
     
    how about an independent audit instead?
    15 Jul 2011, 01:17 PM Reply Like
  • Duude
    , contributor
    Comments (3398) | Send Message
     
    They should rename the European bank stress test to the Euro disclosure hour. I don't doubt they perform a sort of stress test, but the real news is who they want to throw from the train. Its common knowledge European banks mark their assets to original cost basis or current value, which ever is higher. Who really believes the banks thrown from the train this time around actually passed the earlier stress test? What a sham!
    15 Jul 2011, 02:00 PM Reply Like
  • ParkerStorm
    , contributor
    Comments (735) | Send Message
     
    If you want a European bank or any bank go with Deutsche Bank. They passed the test with no problem. Forget about the test, they have a current triple A rating from Moody's, Fitch, & S&P. They have limited exposure to the PIGGS and can cover what they do have if needed. They have a great preferred under ticker symbol DKT that pays our a nice 8.05 % dividend with par at $25 good until 2018. Last close was close enough to par to make it a buy for me. It trades on the NYSE and has plenty of volume if you want to make a quick sell. The medrics look good, the ratings look good, they make money, US branches, and they have reserves to back it up. Good Luck!
    16 Jul 2011, 11:04 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs