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Home > About Us > In the News > July 23, 2010

In the News: Marketplace

In a Public Radio Marketplace interview, portfolio manager Axel Merk sees Eurozone stress test skepticism as healthy

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Portfolio manager Axel Merk discusses the not-so-stressful European stress tests with Public Radio's Marketplace:

AXEL MERK: The pressure will remain on these banks. It's not like the book is now closed and we'll just move on and everything is going to be great in the eurozone. If there are some deficiencies in the stress test, plenty of analysts will go out there and pound on the table and say, 'We'd like to have more information.'

In fact, European Union sources told Marketplace their report provides the raw data analysts can use to draw their own conclusions. That leaves Merk with one more question -- what took so long?

MERK: It scares me a little bit that only once every couple of decades, a regulator comes in and says, 'Maybe we should come in and check whether you guys can stomach a shock.' That is something that should happen every single day.

Merk says the final scores probably won't be as important as that raw data might be in helping to calm the markets. ..."