The States of the EU to the Bank rescue of test failures: draft document

John O'Donnell

BRUSSELS | Friday, July 8, 2011 5 pm EDT

Brussels (Reuters) - European countries will support banks fail stress tests if these lenders can raise capital from investors in the six months, according to a draft EU document seen by Reuters.

Paper, in course of preparation for approval on Tuesday, European Finance Ministers is a reversal of promises of the g-20 politicians in the wake of the financial crisis that taxpayers would never have to bail out banks again.

The European banking authority is due to announce next week the results of its latest high stress of lenders in the region - 91 tests in all - in a further attempt to reassure investors that European banks have rebuilt against future shocks.

This last series of tests is touted as being more stringent than the previous attempts which few banks did not, and the representatives of Finance Ministers to develop plans for how to deal with the fallout.

Lenders who almost fail tests will be put on a list of critical monitoring in the case where they deteriorate further, said the document. These banks will be given until the end of September to repair their finances and will then have a period of three months to implement.

News that European governments seem serious to support banks that fail to maintain own base of 5 per cent of several raised theoretical market shocks future Bund and UK gilts.

"Essentially that puts even more pressure on the periphery (the eurozone countries) to come up with measures, not only to consolidate their budgets, but also to support their banking sectors, which they can ill - allow," said Marc Ostwald, strategist at the Monument of the securities.

"It is basically a load to the back of the present security." "It is a market in the deadly fear of something to do with the zone euro and all involving the banking sector under stress more," said Ostwald.

The performance of Italian/German 10-year spread era hit of euro fresh senior in fears that already fiscally stretched country as the Italy may have to dig into their pockets to bail out banks that fail the test as well.

FIRST PRIVATE SECTOR

According to the document, first capital-raising plans should be based on "" private, including... not distributed... raising additional common shares or measures of the hybrid instruments of high-quality private investors, asset sales, mergers.""

But if the search for private capital leads nowhere, then Governments should be prepared to intervene.

Officials, however, make provision for "extreme case" if efforts to restore a bank fail and threatens the stability of the wider, recommending a "orderly restructuring process and resolution".

The number of banks declared by the ABE were either not encourage investors that Europe is now coming clean with its banking problems, or if the tests are deemed too lax once again, they will have a negative impact credibility already scarred of the EU.

Previous stress tests are widely dismissed as too lax - all Irish banks adopted last year to test a few months before the European Union and the Monetary Fund International had for them and the country overall.

SEPTEMBER DATE LIMIT

In the document, dated July 7, officials wrote that banks that Miss the pass mark of capital of 5% will be given until the end of September, more than later to submit a recapitalisation plan, with a period of three months to implement the "private sector"measures.

"If the banks concerned are unable to implement a credible investment plan within the specified time stands ready to take the necessary measures to maintain financial stability,"officials wrote in the document seen by Reuters.""

The new controls will measure up to how the capital base that depend on the banks to absorb losses such as outstanding loans holds when exposed to an economic dip or fall in the price of the property.

They also assess the impact on banks should the Government obligations that they have issued by States such as the Greece, lose value.

Banks which lends itself poorly to the 5% threshold will be also be kidnapped special attention.

"Banks where (basic level 1) ratio is above, but close to the reference of 5% in the scenario of stress will be subject to prudential supervision strengthened to ensure that it there are no unexpected deterioration in their capital position".

(Additional reporting by Ana Nicolaci da Costa and Huw Jones in London; editing by Sophie Walker)

European stocks less close after data jobs in the United States (AFP)

London (AFP) - European stocks fell after only the most recent Friday data showing low U.S. jobs hopes for a strong economic recovery, said dealers.

FTSE 100 index of London closed main actions 0.59% at 5,984.33 points, to Paris du CAC 40 fell 1.0% to 3,865.58 points and at the Frankfurt DAX slid 0.48% to 6,947.84 points.

Tempered Amsterdam 0.13%, Milan has dropped 0.46%, stocks dragged Swiss 0.54% and Brussels ended down 0.77%.

Stocks plunged 3.02 percent to Lisbon after the yields on government bonds Portuguese hit New Records, a few days before that the country plans to try to place long-term debt for the first time this year.

European markets have fallen low morning trading before the release of U.S. jobs data and fell more thereafter.

The Department of labor of the United States has published its monthly unemployment report closely monitored which investors had hoped would confirm recent data showing that the U.S. economic recovery taking speed.

But the data offered a mixed picture.

The unemployment rate has strongly to 9.4% in December from 9.8% in November to its lowest level since May 2009 and estimate better than average of 9.7%.

But at the same time, the economy has created 103,000 jobs, much less than 150,000 forecasts by analysts.

A report earlier in the week by the firm of ADP showing a sharp increase in sector private hire at 300 000 in December raised expectations that the U.S. economic recovery could finally begin to replace the jobs lost.

"It's a cold (ish) shower after the excitement generated by ADP," reported earlier this week a stellar rise in private hiring in December, said Ian Shepherdson for high frequency economics.

"Acceleration of the underlying trend but progress is quite slow," he said in a note to customer.

Chairman of the Federal Reserve Ben Bernanke warned that the current rate of job creation was insufficient and meant "long", will require right of the labour market.

"Economic recovery began a year ago and a half East continues," the pattern of the Fed said in testimony prepared for the Congress, "Although, to date, at a pace that was insufficient to reduce significantly the rate of unemployment."

"Probably a considerable time be necessary until unemployment rate returned to more normal levels."

Wall Street has opened the dish and then dragged down.

The Dow Jones Industrial Average fell 0.31% at 11,661.40 points around 1700 GMT, while the index S & P 500, a broader measure of the market, had fallen by 0.37% at 1,269.14 points.

Tech-rich Nasdaq was off the coast of 0.39% to 2,699.29 points.

New year Asia stocks rally showed signs of discolouration Friday in the middle of prudence before data from the United States, while Tokyo's Nikkei hit a top eight months with a stronger dollar, giving boost to auto stocks.

Nikkei index in Tokyo edged 0.11 percent for its end above since May 13, supported by the car manufacturers such as Toyota and Nissan as a strong dollar boosted the US sales prospects.

However, Hang Seng Hong Kong dropped 0.42%, which broke a gathering of seven days. The two exchanges are student to approximately 3 per cent in the week.

Sydney dropped 0.42% at the end of the week in which minor coal have been affected by the catastrophic floods and of commodities slid prices.

Media decoder: the United States heads: the voice of the Netherlands (nytimes)

After "American Idol," "The Sing-off," "The America Got Talent" and "X-Factor," entry can anyone lead to yet another way to singers compete on TV?

NBC and one of the producers of reality more success in the enterprise, Mark Burnett ("survivor," "Apprentice"), apparently not think. They are team on a format called "Voice of America", a variation on a hit in the Netherlands, as Mr. Burnett said show would air coming in the spring.

The different aspects of this show both relate how hearings will be held and that will most of the Elimination of the singers. Paul Telegdy, who heads the Department of NBC, reality program said the network has a "Eureka moment" when she saw in the "Voice of Holland" version "a point so simple format, we simply do".

This point: the hearings are blind.

A group of four coaches, including Mr. Burnett said would be artists well known music, listening to singers see them and only decide on the basis of their voice coach wants add to their team. Each coach will be assembling a team through blind auditions. (Coaches will press on a button if they like the talent; if more than one coach expressed interest, singer gets to choose the coach that he or she wants to).

In a second phase, the coaches themselves will eliminate the team per week. Mr. Burnett said that each of the cars will work on performing styles and even the appearance of their team members.

In the final phase, the few remaining candidates an equal number of each coach, participate, until every coach a candidate nomination. The audience will vote on the ultimate winner.

Price, a contract for registration will come with an agreement which also involves the winner career coach. "The coaches have real skin in the game", Mr. Burnett said, "these coaches are really going to win."

Coaches will be "recognizable names", said Mr. Burnett, but none has been selected yet. He said that he had already been searching talents for potential candidates.

NBC made an agreement to buy led by John de mol, Dutch production company whose reality earlier creations have included many international versions of "Big Brother" show. NBC said ratings for the Dutch TV market where the "voice of Holland" has become the most popular talent contest in the country.