Seven European Banks Fail Stress Tests

Seven of Europe’s largest 91 banks failed government stress tests on Friday, meaning they’ll have to raise more capital. Overall, that’s a high success rate—so high, in fact, that The Wall Street Journal says it “raised questions over whether the monthlong tests were tough enough to be judged credible.” The stress test results showed that the 91 banks studied could face $729.35 billion in total potential losses in a deteriorating economic and financial environment.