HSH Nordbank Passes Stress Test; Criticizes Regulator’s Rules

HSH Nordbank AG, the Hamburg lender that was bailed out during the global financial crisis, said European Union regulators found it has sufficient capital to withstand a recession and losses on sovereign debt.

The lender’s core Tier 1 capital ratio, a measure of financial strength, was 5.5 percent in the test’s adverse scenario, surpassing the 5 percent minimum required by the European Banking Authority’s tests, HSH Nordbank said in an e-mailed statement today.