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Heard on the Street: Stresses in European bank tests

Stress tests of US banks helped reassure markets in 2009. Europe would have a far tougher time pulling off a similar feat.

Stress tests of US banks helped reassure markets in 2009. Europe would have a far tougher time pulling off a similar feat.

With finance ministers from the Group of 20 industrialised nations meeting later this week, the US is planning to urge a more-transparent European approach to stress testing of banks as a way to soothe investors. But to work, publicly disclosed tests would need to produce credible results. That is a problem.

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