Spain plays high-stakes poker game with Germany as borrowing costs surge

Spain has upped the ante in a high-stakes poker game with Germany, pushing for the release of EU stress test results for major banks in a move that risks precipitiating a dramatic escalation of Europe’s financial crisis.

“We’re not afraid of transparency,” said the Spanish Banking Association (AEB), saying the full truth would put an end to rumours battering Spain’s instutitions. El Pais reported that the government backs the initiative, putting it on a collision course with Germany which insists on secrecy.

Josef Ackermann, head of Deutsche Bank, warned last week that it would be “very dangerous” to publish the results of each bank, fearing that it would trigger flight from weak lenders and set off a chain reaction.

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Posted in * Economics, Politics, * International News & Commentary, --European Sovereign Debt Crisis of 2010, Economy, Euro, Europe, European Central Bank, Germany, Spain, The Banking System/Sector