ECB's June Financial Stability Review
The European Central Bank published its June 2007 Financial Stability Review on 15 June. The report notes that "profitability in both the banking and insurance sectors has been improving" and "the financial system was again tested by the third significant burst of market volatility in the past two years which it weathered comfortably."
The report also noted that "In some markets, above all in the credit markets, there are concerns about 'pricing for perfection', in the sense that valuations
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