Stress tests of EU banks must be more credible, officials say

DAVOS/SWITZERLAND, 29JAN10 - Jean-Claude Trich...                                       
Hans Hoogervorst, incoming chairman of the International Accounting Standards Board, and Christian Noyer, a member of the European Central Bank Governing Council, added their voices to calls for more credible stress tests of European banks. "One reason for skepticism was that sovereign bonds on the banking book were deemed to retain their full value, despite the fact that many were trading at steep discounts in the market," Hoogervorst said. "The fact that some Irish banks that had passed the test later turned out to be insolvent only served to reinforce the doubts in the market. Full story here