Spain,European Union and IMF all denied that a Spanish Bailout of Euro 250 Billion was being formulated by the international agencies.There are some people who think that a preventive bailout measure will reduce the ultimate cost of a Spanish Bailout learning from the lesson of the Greek Contagion.However despite repeated rumors,the Politicians have continued denied […]
Bear Sterns was brought down as trading partners refused to provide short term funding to the bank.With Banks losing trust and faith in Bear Sterns solvency it was only a matter of time before it went bankrupt.The Spanish Banks are facing a situation somewhat similar though less acute than Bear Sterns did .Foreign Banks are […]
Caja Madrid which was looking for a Bailout from the Spanish Central Bank is merging with another large Caja Bancaja.The Central Bank is pressurizing the Cajas(Socially run Spanish Savings Banks) to merge with each other to reduce costs and improve management.This is being done with the help of a Bailout Carrot.The Cajas are basically badly […]
The Spanish government which moved quickly to cut its Fiscal Deficit following the Greek crisis is now facing a major challenge from the Spanish Unions.The government has cut public sector salaries and is trying to reform the rigid labor laws.The hand of the government has been forced by the Ratings Cut and high yields on […]
Spanish Cajas have been in the news recently acting as the equivalent of the “subprime sector” during the US financial crisis.CajaSur was seized by the Spanish Central Bank after running into massive losses in its real estate loan portfolio.The Cajas which are socially run not for profit banks in general have incompetent management and little […]
The Greek Contagion throws up bad news everyday.Not a day passes by it seems when the Markets and the Euro are rocked from the PIIGS.The Spanish Banking sector has been in the news lately with the “Cajas” being seized or merged together by the Spanish Central Bank.Spurred by the Greek funding problems , European countries […]