More bank speculation as German bank on test fail list now set to pass via ForexLive

Last week we had Handelsblatt saying that 4 German banks might fail the stress tests. Now “sources” say that HSH Nordbank will pass the stress test.

There's no direct comment from the bank but last weeks speculation could obviously lead to a leak about whether they were or weren't. If you were in charge of a bank accused of failing the test you'd want to quash that rumour as quick as, if it wasn't true.

The long and short is that the press would love to hit a big headline by finding a big bank that's going to fail. By the looks of things they're coming up short as it is just the smaller banks that these stories are about. Given the spotlight on the tests you would have to assume that the big boys have been bending over backwards to pass the tests.

The press are on a fishing expedition but it's likely their nets are going to be pretty empty until Sunday.

posted via ForexLive