Errors Found In The ECB’s “Confidence-Boosting” Stress Test | Zero Hedge.
Just when you thought the humor out of the central bank that just released a stress testwhose adverse scenario did not even assume the most likely Eurozone outcome, i.e., deflation, couldn’t get any better, moments ago we learned that the test, which was supposed to restore confidence in Europe’s banking system and in the oversight and regulatory abilities of Europe’s central bank, had “errors and inconsistencies” which forced the ECB to “briefly remove from its website” the results of Italy’s most insolvent bank, Monte Paschi, “after discovering an error in its key capital ratio”, a bank which based on the ECB’s (faulty?) failure assessment was halted countless times earlier today after crashing so hard the regulator had to ban selling it short. Again.
The WSJ tries to put some lipstick on this latest Snafu by the former Goldmanite in charge of Europe’s money printer :
While the tests have been going on since last year, European officials were scrambling until the last minute to finalize the data. On Sunday morning, barely an hour before the results were due to be released, the EBA official in charge of the stress-test process was still scrambling to rubber stamp the numbers, causing him to show up 10 minutes late to a briefing with journalists.
Shortly after the results were published, ECB officials detected an error in the 2013 capital ratio of Monte dei Paschi, Italy’s third-largest bank, according to a person familiar with the matter. The error, on the first page of a template posted on the ECB website, was important because Monte dei Paschi was the worst performer in the stress tests and therefore was at the center of investor attention Sunday.
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