Spain Approves Establishment of 'Bad Bank'
01 September 2012
Spain’s economy minister, Luis de Guindos, voiced confidence on Friday in the “bad bank” plan. (Paul Hann/Reuters)
MADRID — The Spanish government on Friday approved the creation of a so-called bad bank to absorb the most troubled real estate assets of the country’s financial institutions, helping to clear the way for Madrid to receive European rescue money for Spain’s troubled banking industry.
The move is meant not only to let Spanish banks eventually begin to receive money from the €100 billion, or $126 billion, reserve that European finance ministers have approved, but also to restore market confidence in the country’s banking system. Spanish banks have been having problems borrowing money, even as depositors withdraw money at a rising pace and move it to foreign banks.
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1 comment:
An Enron move similar to French Dexia's illegal hiding of it's debt 'offshore' in Belgium... Both countries - France and Belgium, were immediately downgraded by ratings agencies and credit default swaps soared... - More bad paper... I guess that's how they pad the GDP numbers these days...
In any event, the Euro can was kicked further down the road via fraud and imposed austerity... Out of sight, out of mind.
So called 'credit'.. - which is NOT true credit for no bank will lend to them as they can not be trusted to repay, was soon restored...
The only thing keeping them afloat these days is the French Central Bank, which Purchases it's own worthless, and unsellable French Treasury bonds. Just as the US does, they then loan this fake money at 0% to bail out elite gamblers ... The French nation does this by extracting the money it needs from french citizens, by saddling them with ever deepening debt... Borrowing in this way enough Euros to pay the shareholder's illegal gambling debts.
All throughout Europe the same fraud is occuring that is happening here in the US.
The system is broken beyond any hope of repair. Yet they still perpetrate this fraud on the backs of average citizens... the middle-classes.
Soon the ECB will be forced to print it's way out of enormous derivatives debt, or simply repudiate these illegal monstrosities and prosecute the perpetrators. Just as Iceland has done... Either way, Europe has been essentially destroyed by corrupt banking practices.
BTW Germany, the big winner here, has already begun cutting it's losses and reverting to the DeutschMark...
A return to native currencies is the only thing close to a viable solution left to any of these nations.
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