Why Stress Tests Give Little Relief to Europe's Banks
Bloomberg's Gadfly columnist Lionel Laurent writes that Europe's bank stress tests tend to follow a predictable pattern. Investors pick over the methodology, find it wanting, yet buy into the results on the back of increased transparency and the prospect of an end to long-running concerns over capital strength. The 2016 stress tests initially began in much the same way -- but the rally unwound in a matter of hours, not days. Perhaps it's a sign that having no pass mark and effectively giving a clean bill of health to all but one of the 51 banks tested gave nothing new to tell in Europe's long-running bank recovery story. Laurent joined Derek Halpenny from the Bank of Tokyo-Mitsubishi UFJ to discuss with Bloomberg's Francine Lacqua on "The Pulse."