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The Real Threat Facing Spanish Lenders
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MaC Group, a risk advisor to Spanish banks, says Spanish banks hold about 30 billion pounds of distressed real estate and unsellable land. Prices are down 28% from the peak in 2007, according to a report by the IESE Business School, and are expected to fall a further 15-20 percent in the next 2-3 years by some experts. Much of the bank owned land is far from city centers and there is no demand for this. One Madrid based consultant R.R. de Acuna Asociados, says 43% of bank owned land is poorly located and there may be no demand for unfinished residential units for decades. The new government of Mariano Rajoy plans to take action to cleanup the banking system. Louis de Guindos, director of PricewaterhouseCoopers and IE Business School Center of Finance is expected to become the new finance minister. Guindos says strict rules need to be implemented, with some banks able to handle this and others that won't. MaC Group's Cantos, a managing partner, says the gap is huge between prices offered by banks and what investors will pay- as much as 70%. Prime assets can be sold for 30% discount but the land, residential and commercial real estate will require discounts of 70%. Banks have made provisions for losses of 30%, and are now facing the prospect of another 40% in losses. As a result many of the medium and small sized banks which operate only inside Spain may have to be shut down or consolidated by the government of Mariano Rajoy. Only the larger banks like Banco Santander, Banco Bilbao, La Caxia, and Bankia are likely to surivive.
Britain, Sweden, Spain and Basel III capital reserve requirements for banks
01/21/2010
Britain, Sweden and Spain oppose the dilution of capital reserve requirements for European banks through a broad definition of what constitutes Tier 1 capital. Germany, France and some other European countries favor a loose definition of Tier 1 capital. The systemic risks of lower reserve requirements and loose definitions of Tier 1 capital in a global banking crisis and the danger to taxpayers.
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Spanish Banks More Vulnerable Than Italy's
Wall Street Journal 07/13/2011
The Battle Over Bank Rules at Basel III
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Swiss Politicians Push for Stricter Bank Capital Rules
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Basel Rules Unlikely to Force Capital Raising
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Wall Street Journal 09/14/2010
Spain's Bankia bank
10/02/2010
The consolidation of a number of Spanish savings banks under government direction led to the creation of Bankia, Spain's third largest bank. Efforts to recapitalize these banks which have large accumulated large debt from the real estate boom is part of the Spanish government's effort to tackle the debt crisis facing Spain. Rodrigo Rato, a former finance minister and managing director of the IMF, heads Bankia and the effort to restore confidence in Spain's banking system.
Grouped Articles
Spanish Banks More Vulnerable Than Italy's
Wall Street Journal 07/13/2011
Investors in Bankia to Sue Bank of Spain Over Losses
New York Times 05/09/2013
Spain's banks: Two cheers, three tiers
Economist 10/02/2010
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Spain Launches Privatization of Bankia
Wall Street Journal 02/28/2014
A Former IMF Leader Tackles IPO Challenge
Wall Street Journal 06/08/2011
Spain's Cajas savings banks
02/25/2010
Grouped Articles
Spanish Banks More Vulnerable Than Italy's
Wall Street Journal 07/13/2011
New York Times 05/17/2013
The Pain in Spain Falls Mainly on the Cajas
BusinessWeek 02/25/2010
Economist 05/29/2010
Spain's cajas: Thinking outside the box
Economist 07/31/2010
Spain's banks: Two cheers, three tiers
Economist 10/02/2010
Spain's troubled banks- Caja de Ahorros del Mediterraneo
03/11/2011
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Spain Faces Short Buyers List For Troubled Caja
Wall Street Journal 09/07/2011
Wall Street Journal 09/28/2011
Criticism of Spainâs Central Bank Grows
New York Times 10/20/2011
Spain Weighing a Fast, Costly Cleanup of Banks
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The Real Threat Facing Spanish Lenders
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Spain’s banks: Horns of a dilemma
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The ECB's Long Term Financing Operation Dec. 2011- March 2012
11/10/2011
The ECB's newly created Long Term Financing Operation enables European banks to meet their financing needs by borrowing from the European Central Bank at low rates of 1% for three years. Mid size banks in Spain buy government bonds of Spain and use the bonds as collateral at the ECB to access this lowcost funding. This has helped bring down rates at a recent auction of Spain's bonds from 5.1% to 1.7%. Italian banks also participated in the same way. 523 European banks borrowed 489 billion euros on Dec. 21, 2011, under this newly created financing operation of the ECB. This provides European banks financing as they are shutoff from normal financing by selling unsecured bonds to private and institutional lenders. This helps banks in the eurozone meet financial needs in 2012 without reducing lending to businesses and consumers.
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German Court to Weigh Bond Buying by E.C.B.
New York Times 06/10/2013
E.C.B. Plots Strategy for Staving Off Deflation
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Euro-Zone Banks Tap Big ECB Loans
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Staring Into the ECB's Mini Bazooka
Wall Street Journal 12/21/2011
A Central Bank Doing What Central Banks Do
New York Times 12/21/2011
European Banks Rush to Grasp Lifeline
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Why government fiscal discipline alone will not establish a sound financial framework for the Euro currency- the example of Spain
03/03/2010
Spain kept its deficits below the 3% mandated under EU treaties, till recently. Asset bubbles sustained because of bad lending by a country's banks and easy acess to credit from outside the country, are two problems not addressed by tighter budget controls in the revised rules being set after the Dec. 9 EU Summit. Spain's debt problem is to recapitalize these failing banks and debt of regional governments. Spain relied too much on a construction boom for growth, with productivity stalled. Ireland improved competitiveness and attracted foreign investment. This too unraveled in the face of an asset bubble from speculative lending by its banks.
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New York Times 09/25/2011
Wall Street Journal 03/03/2010
German Optimism Depends On Spanish Deficits
Wall Street Journal 09/25/2013
Euro Zone Deficit Hits Target for First Time Since 2008
New York Times 04/23/2014
Spain's Example Shows Limits of EU Targets
Wall Street Journal 12/09/2011
The Euro Zone's Double Failure
Wall Street Journal 12/15/2011
Banco Santander performance
03/24/2011
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Wall Street Journal 05/12/2013
Botín's Legacy at Santander Is a Bank That Works Without Him
Wall Street Journal 09/11/2014
Ana Patricia Botín to Take Over Banco Santander
Wall Street Journal 09/11/2014
Emilio Botin Who Built Up Santander Bank Dies at 79
New York Times 09/10/2014
Banco Santander Profit Jumps 52% Amid Recovery in Spain
New York Times 11/04/2014
Santander’s New Guard Should Break With Dividend Tradition
Wall Street Journal 11/26/2014
Banco Santander sale of assets to raise capital 2011-2012
11/23/2011
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Santander Raises $8.88 Billion in Capital
Wall Street Journal 01/09/2015
Santander Plans $8.9 Billion Capital Increase to Strengthen Balance Sheet
New York Times 01/08/2015
Wall Street Journal 11/23/2011
Santander Sells a Chilean Stake in Effort to Boost Capital
Wall Street Journal 12/08/2011
The Real Threat Facing Spanish Lenders
BusinessWeek 11/23/2011
Spanish Banks Find New Source of Capital Comes With New Kind of Risk
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Banco Santander UK
07/28/2011
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Ana Patricia Botín to Take Over Banco Santander
Wall Street Journal 09/11/2014
Santander Names Nathan Bostock as New CEO of U.K. Arm
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Santander Raises $8.88 Billion in Capital
Wall Street Journal 01/09/2015
Trouble in U.K. Squeezes Santander
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Santander Prepares Record Mexico IPO
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Spain and default on residential mortgages
02/25/2010
The housing market and banks in Spain, and the extensive system of mortgage modification in place to mitigate housing losses.
Grouped Articles
The Pain in Spain Falls Mainly on the Cajas
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Spain's Banks Boost Books by Refinancing Loans to Homeowners
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Leading the Charge Against Spainâs Mortgage Crisis
New York Times 12/20/2013
Spain Still Suffering Fallout From Housing Bust
Wall Street Journal 05/28/2014
Tumbling Interest Rates in Europe Leaves Some Banks Owing Money on Loans to Borrowers
Wall Street Journal 04/14/2015
Wall Street Journal 12/17/2010
Spain's economy 2010-2013
07/22/2010
Grouped Articles
Still Sputtering, Spain Turns Away From Cuts
Wall Street Journal 05/12/2013
Spain: Budget Woes Hit Regional Governments
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Spanish Job Market May Be Turning Around
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New York Times 07/28/2011
Italy Seeks to Tackle Youth Jobless Problem
Wall Street Journal 08/22/2011
Wall Street Journal 09/28/2011
The debt of regional governments in Spain.
07/22/2010
With $200 billion in debt, local governments from Catalonia to Valencia, are facing more spending cuts in 2010. The local governments are looking at raising $57 billion in debt markets in 2010, the highest of any local governments in Europe except Germany.
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Rajoy Appeals to Catalonia to Stick With Spain
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Spanish Towns Struggle Under Crushing Debts
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Spain: Budget Woes Hit Regional Governments
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European Union Plans System for National Debt Crises
New York Times 10/29/2010
The euro crisis: Spreading from Ireland to Iberia
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Spain to Open Books in Bid to Calm Investors
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Initial public offering planned for Spain's Bankia bank
03/11/2011
Efforts to recapitalize Spain's savings banks.
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Investors in Bankia to Sue Bank of Spain Over Losses
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Wall Street Journal 02/04/2014
Spain Launches Privatization of Bankia
Wall Street Journal 02/28/2014
A Former IMF Leader Tackles IPO Challenge
Wall Street Journal 06/08/2011
In Spanish, Bankia Starts Wooing IPO Investors
Wall Street Journal 07/01/2011
Spain's banks
07/09/2010
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Spain's banks: Two cheers, three tiers
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Loan Growth Suffers at Spanish Banks
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Spain to Approve Cajas Regulatory Overhaul
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Crisis Awaits Worldâs Banks as Trillions Come Due
New York Times 07/11/2010
Spain's cleanup of bad bank assets under prime minister Rajoy in 2012-2013
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Wall Street Journal 09/28/2011
Spain Emerges From Recession but Sees More Austerity Ahead
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Why European Banks Are Sacrificing Growth
BusinessWeek 12/15/2011
Spain's Rajoy Takes Aim at Deficit
Wall Street Journal 12/20/2011
A Central Bank Doing What Central Banks Do
New York Times 12/21/2011
Spain's central bank
10/20/2011
Bank of Spain governors Ordonez under the Zapatero administration and the new Bank of Spain Governor Linde under the Rajoy administration.
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Criticism of Spainâs Central Bank Grows
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Spain Readies New Push to Shore Up Banks
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Spanish Central Bank Chief to Leave Early as Crisis Gathers
New York Times 05/29/2012
Spanish Officials Hailed Banks as the Crisis Built
New York Times 06/26/2012
The urgency for recapitalization of European banks in 2011-2015
07/13/2011
EU banks face potential losses of 300 billion euros from troubled EU countries. 120 billion euros from Italy, Spain and Belgium, 60 billion euros from Greece, 20 billion euros from Ireland and Portugal, and $100 billion euros from other banking exposure, accordig to the IMF. IMF managing director, Christine Lagarde, has pointed to the urgent need for recapitalization of European banks,urgently because restricted lending by EU banks in the absence of recapitalization could further damage the economies of EU countries.
Grouped Articles
Spanish Banks More Vulnerable Than Italy's
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Bank of Italy Inspecting Top Lenders' Books
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Central Bank Details Somber State of Europe’s Banking System
New York Times 10/13/2014
Wall Street Journal 07/04/2015
The Banker Who Is No Longer Welcome in Restaurants
Wall Street Journal 01/27/2016
Italy Agrees on Fund to Support Battered Lenders
Wall Street Journal 04/12/2016
Banco Santander Brazil
05/05/2006
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McDonald's Cranks Up The Volume on 'Value'
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CEO Says Hilton Exploring New Hotel Brand for 2014
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Auto Lender's Drive Reaps a Fortune
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Ana Patricia Botín to Take Over Banco Santander
Wall Street Journal 09/10/2014
Ana Patricia Botín to Take Over Banco Santander
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Emilio Botin Who Built Up Santander Bank Dies at 79
New York Times 09/10/2014
Banco Santander management
06/16/2011
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Wall Street Journal 05/12/2013
Auto Lender's Drive Reaps a Fortune
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Botín's Legacy at Santander Is a Bank That Works Without Him
Wall Street Journal 09/11/2014
Ana Patricia Botín to Take Over Banco Santander
Wall Street Journal 09/11/2014
Emilio Botin Who Built Up Santander Bank Dies at 79
New York Times 09/10/2014
Banco Santander strategy
07/01/2010
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Wall Street Journal 05/12/2013
Santander's Moves Puzzle Investors
Wall Street Journal 07/01/2010
Auto Lender's Drive Reaps a Fortune
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Ana Patricia Botín to Take Over Banco Santander
Wall Street Journal 09/10/2014
Botín's Legacy at Santander Is a Bank That Works Without Him
Wall Street Journal 09/11/2014
Ana Patricia Botín to Take Over Banco Santander
Wall Street Journal 09/11/2014
Santander performance
07/01/2010
Grouped Articles
Wall Street Journal 05/12/2013
Santander's Moves Puzzle Investors
Wall Street Journal 07/01/2010
Auto Lender's Drive Reaps a Fortune
Wall Street Journal 01/23/2014
Ana Patricia Botín to Take Over Banco Santander
Wall Street Journal 09/10/2014
Ana Patricia Botín to Take Over Banco Santander
Wall Street Journal 09/11/2014
Emilio Botin Who Built Up Santander Bank Dies at 79
New York Times 09/10/2014
Banco Bilbao
11/23/2011
Grouped Articles
The Real Threat Facing Spanish Lenders
BusinessWeek 11/23/2011
Spain under the new administration of Mariano Rajoy in 2012-2018
11/16/2011
The Partido Popular under Mariano Rajoy is expected to win a large majority in Spain's general elections in 2012.
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Spain's Rajoy Rejects Calls to Quit Over Text Messages
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Spain Emerges From Recession but Sees More Austerity Ahead
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Election Is Unlikely to Cure Spain's Pain
Wall Street Journal 11/16/2011
Spanish Vote Heralds More Austerity
Wall Street Journal 11/18/2011
Spain’s conservatives declare victory in election - The Washington Post
Washington Post 11/20/2011
Conservatives Ride Crisis to Victory in Spanish Vote
Wall Street Journal 11/21/2011
The lack of reliable data on housing and banking in crisis prone European countries
11/26/2010
The lack of reliable data and lack of transparency in Ireland, Spain, and other crisis prone countries in 2010-2011.
Grouped Articles
Wall Street Journal 11/26/2010
Spain to Open Books in Bid to Calm Investors
Wall Street Journal 12/18/2010
Ghostly Developments Also Haunt Spainâs Banks
New York Times 12/17/2010
Spain Says Its Regions Are Financially Sound
Wall Street Journal 12/21/2010
For Spain, Real-Estate Outlook Appears Bleak
Wall Street Journal 01/05/2011
Spain to Ramp Up Bailout of Banks
Wall Street Journal 01/20/2011
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