Stress Testing European Banks

There is some movement at very high European level to tackle the systematic evil going on inside banks. I have been following this over the course of a year via The Guardian and Joris Lyendijk. in “Bankers: an anthropological study“.

Here are some pieces from a New York Times frontpage article that has sent stock prices of banks south:

The C.E.O.’s, they look superhuman, but, in fact, very often they don’t know what’s going on, and they don’t understand because it is very, very complicated,” Mr. Angeloni (head) of the European Central Bank’s financial stability division said.

The algorithms that govern the movements of asset prices are very difficult to understand for any C.E.O.,” he added. “In the end, the C.E.O., the people at the top, have to concentrate on the politics, right? If you are in that mind frame, it’s very difficult to concentrate on the nitty-gritty technical details. So there is a growing gap between the people who work at the bottom and understand the little things, and the people on the top.

Read the full article in the New York Times.

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