July 26, 2010
The stress test in which only seven of 91 European Union banks failed is just a public relations exercise and wasn’t tough enough, famous investor Jim Rogers told CNBC.com Monday.
On Friday, EU authorities released the results for the stress tests, with many analysts saying the criteria had been harsher than the ones used to test US banks a year ago. But Rogers said the European test was “a PR exercise just as was America’s.”
They were “a waste of time ‚Äď and journalistic ink,” he wrote in an e-mail.
Many analysts criticized the fact that a sovereign default in Europe had not been taken into consideration in the criteria for the test, but the head of the Committee of European Banking Supervisors (CEBS) told CNBC that sovereign exposure of banks taking the test had been disclosed.
This article was posted: Monday, July 26, 2010 at 4:58 am