QotD: (In)Credible Bank Stress Tests

From the FT today:

“We consider less than credible a stress test that yields an outcome in which no Spanish institution will need to raise capital under an adverse situation, with unemployment at 22 per cent for almost four years now, cumulative real estate price declines ranging from 34 per cent to 60 per cent from the peak, rising interest rates, widening sovereign spreads and four years of negative GDP growth.”
– Santiago López Díaz, an analyst at Exane BNP Paribas

via Spain’s Bankia to raise €3.3bn in IPO – FT.com.