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Stress test 'skewed'

EUROPEAN Competition Commissioner Joaquin Almunia said that AIB passed its stress test last year when the Government underestimated the discount NAMA would apply to its loans.

If the tests were realistic, the bank could have been nationalised earlier and the State might have avoided having to be bailed out by the EU/IMF according to Trinity finance professor Brian Lucey (above).

The letter from Mr Almunia on the exercise for AIB was in response to queries from Labour MEP Alan Kelly.