Europe's banks still in trouble, the downside to stock Bivax, and why bank profitability could be depressed for decades.

This is where the money is.

Hi Fool's, financial analyst Michael Douglas here with Senior Baking Specialist John Maxfield

all the way from Portland, Oregon. John, how's it going?

It's going great, thank you Michael.

All right, fantastic.

Well we've got a pretty stacked show today a pretty banking heavy but of course you know we're financial so that's kind of a that's kind of well as it is where the money is.

Let's start with our first headline from our friends over at Bloomberg. Europe's banks are still a threat.

The European Central Bank just published the result of its annual stress test.

They examined 130 banks, found that 25 didn't have enough capital to safely endure another recession or financial market shock.

So some people saw this as a great success.

Why is that, John?

Well the reason a lot of people saw this as such a big success is because people were concerned

that there were going to be much worse results.

So you had a group out of Switzerland.

For instance, that looked at the 37 kind of worst positioned banks in the

European Union right now and they estimated that they were short of capital by something like

five hundred billion dollars. Well this test came back in and this was run by the European Central Bank and they said

that look even the worst banks are only short by I think the eight worst banks are only short

by roughly $6. billion dollars in capital.

So it's much better than a lot of people had originally forecast.

Sure, good to hear.

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