Goldmans warns 50 top banks will fail new stress tests

At least 50 of Europe's top 91 banks are expected to fail the European Banking Authority's (EBA) new stress tests, analysts at Goldman Sachs have warned.

The Continent's weakest banks could be facing a shortfall of as much as £260bn if the EBA forces lenders to raise their capital buffers to 9% of their total loan book, the Financial Mail reports. The watchdog is currently re-working its widely criticised examination of the region's banking system conducted in July, which awarded a pass mark to all but eight of Europe's major lenders. Dexia was one of the institutions to come through the tests but it had to be bailed out last week. Goldman Sachs' warning came as finance ministers from the world's 20 leading economies gathered for ta...