Hypo Real Estate, which was nationalized by Germany some time ago, is expected to fail the stress test, Bloomberg reports.
Already owned by the state, expect more state money to be put in to keep it afloat .
The negative headline may hit the euro near-term, but the bank is no longer a systemic risk, the way one of the big German or French banks would be.
UPDATE: According to Bloomberg’s source, Hypo Real Estate is likely the only German bank to fail the test.