ECB's Stress Test Will Boost European Distressed Market

Law360, New York (November 6, 2014, 10:34 AM EST) -- On Oct. 26, 2014, the European Central Bank released the results of its "comprehensive assessment" of the financial health of 130 banks in the European Union.[1] Twenty-five banks "failed" the test; within that group, 12 banks have already proactively raised capital to bring their capital ratios into compliance and 13 banks will be required to raise an aggregate €6.1 billion in the next six to nine months.[2] In the grand scheme of things, these numbers do not appear insurmountable. The collective sigh of relief from the European markets, and the banking sector in particular, was plainly audible....

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