The FDR Framework is the backbone for a 21st century financial system. Under this framework, governments ensure that every market participant has access to all the useful, relevant information in an appropriate, timely manner. Market participants have an incentive to analyze this data because they are responsible for all gains and losses.
Friday, July 15, 2011
Analysts begin the process of analyzing disclosure included with European stress tests
A UK Guardian blog on the release of the European stress test results documents the observation that analysts are interested in and fully capable of changing raw data into information.
But Sony Kapoor, MD of Re-Define, an economic think tank, says the unprecedented level of detail contained in the stress tests will be a "real punch" that'll lead to a roller coaster few days.
"The EBA has done everyone a big favour by shining the light of transparency on opaque risks in the European banking system."
"The next few days are likely to deliver a roller coaster ride as the new information contained in the stress tests is digested and everyone waits for EU policy makers to make up their mind on Greece."
"The bank-sovereign links that the stress tests reveal means that the pressure to sort out the Euro crisis and put in place a good bank resolution framework will increase sharply."