Oct. 4 (Bloomberg) -- Dexia SA “has a business model which in terms of liquidity is quite stressed,” said Andrea Enria, chairman of the European Banking Authority.
The treatment of sovereign debt in the recent stress tests explains why its problems were not revealed, he said at the European Parliament in Brussels today.
“Changing the treatment” of sovereign debt “would cater for these events going forward,” he said, referring to the stress tests.
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