CDS pricing indicates fear that European banks are hiding losses:

07/7/2010 | Bloomberg · Reuters

Despite assurances that results of stress tests on EU banks will be made public, bank bonds are substantially more expensive to insure against default than comparable debt issued by U.S. banks, suggesting that bond buyers are worried about concealed losses in Europe. Credit default swaps on the senior debt of 11 U.S. banks cost about 144 basis points. For European banks, the amount has increased this year to 224 basis points.

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Bloomberg · Reuters

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