Spanish lenders face the prospect of needing as much as 12 billion euros ($15 billion) of extra collateral for their central bank loans, raising pressure on the banks as they negotiate a 100 billion-euro bailout.
A committee of credit-default swaps traders will expedite an auction to settle about $3 billion of contracts tied to Greece after the nation took steps to force investors to participate in the biggest sovereign-debt restructuring in history.
U.K. stocks climbed, sending the FTSE 100 Index up by the most in almost three week, as companies from BP Plc to BG Group Plc and International Tobacco Group Plc reported earnings that topped analysts’ estimates.
European banks may have to raise as much as 80 billion euros ($112 billion) of additional capital as the stress tests failed to allay investor concern about a Greek default and governments’ ability to bail out their lenders.
Ireland’s banks may take another 20 years to repay the government bailouts they received, the Sunday Independent reported, citing comments by Hank Calenti , head of bank credit research with Societe Generale.