Italian Banks Crash To New Lows Despite Passing Self-Defined Stress-Test

Have no fear, Banco Popolare has run its own stress test (on itself) and has stated that it is “resilient to shocks.” However, it appears investors do not believe them as Italian banks, led by Monte Paschi (which as a reminder is under a short-sale ban) plunged to new record lows.

Banco Popolare SC said stress tests using the same criteria as the European Banking Authority’s review later this month show the Italian lender’s “resilience” to adverse shocks.

The company said it can’t communicate the results of the European Union-wide stress tests, which will be disclosed July 29, according to a stock exchange statement Thursday.

*BANCO POPOLARE SAYS IT’S CONDUCTED INTERNAL STRESS EXERCISE
*BANCO POPOLARE: IT’S INTERNAL STRESS TEST APPLIES EBA CRITERIA
*BANCO POPOLARE: INTERNAL TEST CONFIRMS RESILIENCE TO SHOCKS

So everything is awesome then?

Hhmmm…