Hypo Real Estate to fail stress test
Hypo Real Estate (HRE), the German bank nationalised during the financial crisis, is set to become the first bank to fail a European stress test. HRE, which is already being propped up with €100bn (£84bn) of public funds, is likely to need more capital from the German government to pass muster. Europe is testing how banks across 20 countries would cope with another economic downturn and losses on sovereign debt holdings, in an effort to restore confidence after the Greek crisis hit markets and sparked fears the Eurozone could unravel.Major listed banks are expected to pass.