Many analysts expected as many as 20 banks to fail Europe's stress tests. That only eight failed...

|By:, SA News Editor

Many analysts expected as many as 20 banks to fail Europe's stress tests. That only eight failed reflects the fact that banks scrambled to raise new funds ahead of the tests, but also that the tests used some benign assumptions. They may have underestimated worst-case unemployment in countries such as Spain, and didn’t look at what would happen if Greece or Portugal default.