Spain Announces Massive Bank Bailout
The Spanish government is set to launch a sweeping bailout of its troubled regional savings banks in an attempt to reassure global bond markets.
In every country so far except Iceland, from the U.S. to the U.K. to Ireland & Greece, the bill for bailing out criminally over-leveraged banks goes to taxpayers. Spain is simply another domino in the global bankster recapitalization heist, sponsored by captured politicians from Montana to Madrid.
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Forty out of a total of 45 Spanish cajas will merge or form operating alliances with each other as the authorities look to prevent fears over the banking system from morphing into a wider market run on the country as a whole.
Alfredo Perez Rubalcaba, Spain's deputy prime minister, said: "The government is preparing a plan, the aim of which is to increase the solvency and the credibility of the savings banks."
It is hoped that private investors can be found to put money into the cajas. However, Spain's Fund for Orderly Bank Restructuring could take stakes in those that are unable to attract outside investment.
Speaking before the announcement of the restructuring plan, analysts at ratings agency Fitch said the country would need a "credible" plan to ensure it maintained its sovereign credit rating at its current level.
David Riley, global head of sovereign ratings at Fitch, said he expected the cost of the recapitalisation of the cajas to come in at about €50bn (£42bn) to €60bn.
"If we get much larger recap costs than we have currently built into our rating, then obviously that would prompt us to have a look at the rating again," Mr Riley said. Moody's last month put a negative outlook on Spain.
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Spanish bank protested by Flash Mob of Flamenco dancers...
Esto es muy espectacular...
Video - Banco de Santander en Madrid - Dec. 22, 2010
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Please watch this - the hilarious truth about European bailouts...
Brilliant satire. Clarke & Dawe on the European debt-guarantee circle jerk...
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Jan 24, 2011 at 12:12 AM
Reader Comments (3)
http://thedailybell.com/1690/End-of-Euro-Ireland-Prints-Own-Notes.html
http://www.activistpost.com/2010/11/citizens-of-europe-rage-against-machine.html
http://www.npr.org/blogs/pictureshow/2011/01/23/133124061/blizzard
this is interesting...