ECB Admits 5 Banks Don’t Meet Capital Requirements; Cockroach Theory Does Not Stop at Five

The ECB just announced that five banks do not meet capital requirements.

If the ECB admits five, how many are there? Five? Ten? Twenty? A hundred?

If you know the answer, you certainly know more than me.

ECB Admits Five Banks Don’t Meet Capital Requirements

Via translation, Huky Guru reports ECB Detects Five Eurozone Banks Don’t Meet Capital Requirements.

A report by the ECB figure in five eurozone institutions that do not meet the minimum capital requirements required by the institution, but has not detailed the names of these banks.

Specifically, the report indicates that five banks have failed to meet the requirements of Tier 1 capital required by the SREP, but has not disclosed which ones. A sixth bank  achieved the level of  “almost” capital impaired.

Three Cockroach Rules

1. There’s never just one.
2. There’s always more than you see.
3. There’s always more cockroaches than anyone admits, especially central banks.

Mike “Mish” Shedlock