Results of European stress tests were released late last week, showing that seven of the 91 banks assessed need to raise a total of €3.5 billion in capital. Five Spanish savings banks, Agricultural Bank of Greece and Hypo Real Estate of Germany were deemed to not have enough reserve to maintain a 6% Tier 1 capital ratio in the event of market turbulence. The tests also discovered that all of the banks might face losses of as much as €566 billion if the economic and financial environment deteriorates.

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