MARKET TALK: Ten Out Of 91 Banks To Fail Stress Tests - Survey

23rd Jul 2010 09:10

0810 GMT [Dow Jones] Ten out of 91 institutions will not pass the European bank stress tests, according to a survey conducted by Goldman Sachs, which closed 24 hours before the 1600 GMT release of the results. Banks in Spain, Germany and Greece are expected to raise the most fresh capital. Meanwhile, 63% believe the amount of capital raised will leave banks adequately or overly capitalized, while 37% see a capital deficit even post the stress test. However, Goldman says opinions remain split on the performance of the sector in the three months following the stress test, with 38% expecting outperformance, 26% underperformance and 36% an in-line performance. The Stoxx 600 Banks index +0.1% at 211.38. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 23, 2010 04:10 ET (08:10 GMT)