I am going to make this one quick but I thought it was necessary to call attention to this issue because it highlights how opaque the banking landscape in North America and Europe presently still is. Nationalised Dutch lender SNS Reaal, the fourth largest bank in the Netherlands, has recently been nationalised despite a reported 13 percent Tier 1 capital level in the most recent round of banking stress tests in Europe (pdf here). Clearly, the stress tests weren't particularly stressful. I would go so far as to say they were 'phony'. As Citi Chief Economist Willem Buiter warned in the Dutch press last month, more writedowns are unavoidable, especially if house prices in the Netherlands continue to decline.
FT Alphaville has a good post on the SNS Reaal issue that I highly recommend. The lo...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.