Are Italian banks failing stress tests?

Bank of Italy Governor Mario Draghi said he was “amazed by the fantasy” of a press report today saying that stress tests of the country’s banks showed that three of the nation’s biggest lenders may need to raise 25 billion euros in additional capital.

Draghi said at a press conference in Rome that stress testing banks “is a very complex process” that was just beginning. He called any estimates of financing needs for Italian banks “unfounded.”