The health of European banks has reemerged as an important market factor this year. The IMF warned that the greatest risk to global financial stability stems from three European banks. Branches of two European banks failed the Federal Reserve's stress test. And this does not even mention the Italian banks, and especially the oldest bank in the world, Monte Paschi, which has been the immediate focus. The Dow Jones Stoxx 600 Index has fallen 6.8% so far this year and 13.6% over the past 12 months. The sub-index of banks is down 30.5% this year and 44% over the past 12 months. There are three broad issues: bad loans, ... (full story)