el-mundo-report-on-30-billion-euro-spanish-bank ... - Business Insider
But that was mostly expected.
What freaked out investors was a new report in El Mundo that suggested a new, much-more expensive fire needed to be put out.
In its latest Euro Areas: Sovereign Debt Crisis Update note, Citi summarizes the report:
Reports suggest Spain may need an extra ?30bn for banks - Spain may need another ?30bn to clean up its banking system on top of the ?19bn required by Bankia according to El Mundo. The money would be split along the following lines: ?10bn for a balance sheet cleanup and ?20bn to raise capital levels, citing
government sources. The newspaper argues that the ?30bn would go mainly to CatalunyaCaixa, Novagalicia and Banco de Valencia. The newspaper also quoted government sources suggesting that, should the Greece crisis continue and Spanish 10-yr bond spread remain around 500bps, Spain could seek aid from European funds.
And for more on today's big Spanish market selloff, click here >
golden globe nominations 2012 war in iraq war in iraq government shutdown iraq war over iraq war over maurice jones drew