An Economist article entitled Economists React: European Stress Tests Leave Unanswered Questions, suggests that many were not satisfied with the test. The article said: The tests’ credibility can be questioned in at least four ways.
First, they failed to include a scenario involving a sovereign debt default.
Second, the assets tested involved only sovereign bonds traded, not those held to maturity by banks.
Third, the bar for passing the tests was set low, at a minimum 6% capital-to-asset ratio.
Fourth, the tests measured banks’ asset quality but not liquidity. Many banks that passed, such as those in Greece, rely heavily on the ECB for liquidity.
You can read this entire article below.
First, let me point out how well Jyske Bank did on this test. Thomas Fischer from Jyske Global Asset Management just wrote: Hi Gary, In the EU stress test of 91 banks Jyske bank came out as the 8th strongest bank in Europe. The test had a 6% Tier 1 ratio and Jyske Bank came out in the 2 tests Adverse Scenario/Additional Sovereign Shock with 12.8% and 12.5% accordingly.
So whether the EU bank stress test was adequate or not… Jyske performed well. This is why we like this bank so much… their common sense… safety oriented attitude and activity.
This is why I have been inviting readers to join Merri and me in Copenhagen this August 25, through 28, 2010 at Jyske Global Wealth seminar.
I gain no financial remuneration or benefit of any kind if you are in Copenhagen or not. I am reminding everyone about this seminar because I really believe in it and because there are so few ways for Americans to invest overseas now.
This is also a great opportunity to visit Europe because a strong US dollar means you will save on this trip. See how below.
For ease and speed in reading I have copied portions of Jyske Bank’s invitation. To learn all the details and register be sure to see Jyske’s official invitation and the registration form at Global Wealth Management Seminar.
Merri and I love this trip to Copenhagen… our favorite European city. Here is the invitation from Jyske.
The speakers will be incredibly informative. I find it quite a privilege to be on the speaking schedule but would go to hear the other speakers if I were not.
Here are the speakers who will be led by Thomas Fischer of Jyske Global Asset Management.
This is also a great time to see Copenhagen and surrounds. Here are some of the tours that are included in your fee.
Join Merri and me in Copenhagen. We’ll learn more about emerging markets but also love strolling along Copenhagen’s famous pedestrian shopping street called Stroget. Stroget is not a name of a specific street, but a connection between the west and east part of Copenhagen. The shops are amazing… but the street entertainment even better! Every summer that we are there we search through the fruit and flower markets on the streets for THE perfect fig…buy one each, find a great seat, sit down and slowly eat it while watching the crowds walk by!
Merri and I hike the harbor every day when we are in Copenhagen. We love…
the sights, the…
open air and…
waterfront dining. Summer is the best time to visit Copenhagen.
The strong US dollar makes this the year to enjoy Europe and Thomas Fischer at Jyske just sent me this note: Gary due to the increasing US dollar, the cost for our August seminar in Copenhagen for Americans has dropped to $1,700 or only $1,400 per person for couples. (THE COST INCLUDES MOST OF THE FOOD, TRIPS, MAKING THE CONFERENCE A GREAT BARGAIN.)
Some great things about the Copenhagen conference are the seminar of course…then there’s the stunning food and the wonderful visits included…This package includes: accommodation at the Copenhagen Marriott Hotel for four nights, (25-28 August) including breakfast, Reception and dinner at the bank’s Copenhagen offices, seminar fee and materials for the seminar sessions on Thursday, Friday and Saturday. full lunches on Thursday, Friday and Saturday, canal & harbour tour on Friday in the late afternoon, four-course gala dinner with entertainment and dancing on Saturday evening, and a Sunday excursion including lunch.
Merri and I always go on the excursion also to Silkebord with a drive out into the country, lovely food, picnic cruise and a chance to see the main office and the trading center. This is always our most interesting, favorite and delightful conference…and we hope you will join us there! We love the stroll along the harbor, the fresh air, wonderful meals and interesting people from all over the world.
See details on how to join Merri and me at Jyske’s bi annual Copenhagen seminar here Global Wealth Management Seminar.
We also really enjoy the restaurants and coffee shops along Nyhavn.
P.S. If you are a chocoholic as I am, don’t miss the really important reason to visit Copenhagen… the bakeries and cafes…. like Konditori La Glace!
Konditori La Glace is the oldest (and perhaps) the best confectionary in Denmark. This cafe began 8 October 1870, and has served sweet teeth like mine for six generations. It is an experience just to visit the beautiful old rooms located in Skoubogade 3. You can eat these confections on location take it back to your hotel or in a chocolate emergency they deliver.
We hope to see you in Copenhagen.
Full details are at Global Wealth Management Seminar.
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Read the Economist article: Economists React: European Stress Tests Leave Unanswered Questions