“In early 2010, top officials at the Federal Reserve began to wonder: how would United States banks hold up through the European debt crisis? Investors were fleeing Greece and Ireland, and starting to get nervous about Portugal and Spain, spreading contagion.
The conclusion from the stress tests that resulted was heartening to supervisors at the regulator, according to a person who was directly involved in the exercise: American banks didn’t have too much exposure to Portugal and Spain, so the contagion would not be a problem.
Unless it hit Italy.”
Read the full story at the New York Times