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Spanish Official: Slow Reaction to Crisis
Keywords:
Bank of Spain Governor Luis Maria Linde told a parliamentary committee "the loss of confidence in our banking system cannot be blamed exclusively on the global economc downturn, on problems in the eurozone, or on our own recession." He was critical of the previous Bank of Spain Governor Fernandez Ordonez, an appointee of the previous Socialist government, for "acting with little determination, or insufficiently or inadequately." He said the central bank's permitting of virtual mergers of troubled savings banks in place of real mergers with restructuring decisions, were part of the problem. Linde is a member of the ECB's governing council. Spain's central bank had for years championed macroprudential supervision, where banks set aside funds in good times for contingencies in bad times. Linde described those efforts as having failed because the Bank of Spain was "too timid" with the provisions set and failed to curb the credit and property bubble.
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.
Grouped Articles
Criticism of Spainâs Central Bank Grows
New York Times 10/20/2011
A Central Bank Doing What Central Banks Do
New York Times 12/21/2011
The Real Threat Facing Spanish Lenders
BusinessWeek 11/23/2011
Spain Readies New Push to Shore Up Banks
Wall Street Journal 05/08/2012
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
Bad loans in Spain's banking system from the housing bubble
04/04/2009
Grouped Articles
Wall Street Journal 09/28/2011
The Pain in Spain Falls Mainly on the Cajas
BusinessWeek 02/25/2010
Spain's Banks Boost Books by Refinancing Loans to Homeowners
Wall Street Journal 11/07/2013
Economist 04/04/2009
Spanish House Prices Decline Again
Wall Street Journal 05/28/2014
Spain Still Suffering Fallout From Housing Bust
Wall Street Journal 05/28/2014
The impact of the housing bubble related banking crisis on small and medium sized business in Spain
02/25/2010
About 60% of the economy and 80% of the jobs in Spain are with small and medium sized business. The consolidation of banks is leading to loss of local contact. The need to build capital reserves to cover bad loan losses means banks are calling in loans to these businesses. This is happening in smaller towns and cities across Spain, and will worsen the already high 25% unemplyment rate. The credit squeeze is hurting the recovery.
Grouped Articles
Europe’s credit crunch: Mend the money machine
Economist 05/16/2013
The Pain in Spain Falls Mainly on the Cajas
BusinessWeek 02/25/2010
For Some in Europe, High Lending Rates Hamper Recovery
New York Times 05/12/2014
E.C.B. Plots Strategy for Staving Off Deflation
New York Times 05/26/2014
Spanish Loan Data Suggests Modest Recovery
Wall Street Journal 10/25/2014
In Spain, Banks Find Dry Lending Landscape
Wall Street Journal 12/04/2014
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.
Grouped Articles
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
Reports by consulting firms Oliver Wyman and Roland Berger, and a separate report by audit firms looking into the books of Spanish banks
03/11/2011
Consulting firms estimated 62 billion euros will be needed to recapitalize Spain's banks. This is similiar to figures of Fitch Ratings and the IMF. The consulting firms of Oliver Wyman and Roland Berger used informaton provided by the Bank of Spain and did not look directly into the books of individual banks because of time constraints. The Spanish government is doing a separate detailed audit using audit firms which will examine the books of the 14 largest banks and report by the end of July. Disagreement between Mr. Alumnia, Spain's representative at the EC and the Spanish government about whether some banks should be closed.
Grouped Articles
For Spain, Accusations of Lagging on Reforms
New York Times 06/20/2012
Spanish Aid Plan Is Flawed, Says IMF
Wall Street Journal 06/22/2012
Euro Zone Eases Budget Demand on Spain
Wall Street Journal 07/10/2012
Spanish Official: Slow Reaction to Crisis
Wall Street Journal 07/18/2012
Germany Makes Last Pitch Before Vote
Wall Street Journal 07/18/2012
Auditors Prepare for Spain's 'Bad Bank' Plan
Wall Street Journal 08/02/2012
Spain's banks and housing construction in 2011-2012
02/25/2010
Continued construction in housing suported by Spanish banks in 2011-2012. This is happening when a huge inventory of residential units estimated by some analysts at over 1 million remains unsold. It could further dampen home prices.
Grouped Articles
The Pain in Spain Falls Mainly on the Cajas
BusinessWeek 02/25/2010
Spain's banks: Two cheers, three tiers
Economist 10/02/2010
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Spanish Banks Try to Build Their Way Out of Home Glut
Wall Street Journal 01/11/2012
Spain Spells Out Latest Plan to Bolster Health of Lenders
Wall Street Journal 02/03/2012
Wall Street Journal 02/08/2012
Spain's Caixabank
04/19/2012
Grouped Articles
Caixabank Profit Tumbles on Property Provisions
Wall Street Journal 04/19/2012
Wall Street Journal 04/19/2012
Cost of Spainâs Housing Bust Could Force a Bailout
New York Times 04/24/2012
Spain Readies New Push to Shore Up Banks
Wall Street Journal 05/08/2012
Spain's Bank-Investor Ties Stir Worry
Wall Street Journal 05/09/2012
On Banks, Spain Again Fails to Take the Bull by the Horns
Wall Street Journal 05/13/2012
Spain's prime minister Mariano Rajoy's handling of the economic and banking crisis in Spain
09/28/2011
Rajoy's history cautiously embracing politics as Spain emerged from the Franco era, his father's advice to avoid politics after the searing experience of his grandfather in Galicia, the early years in Pontevedra, Galicia, and regional pride in Galicia, are described in Rajoy's book "En Confianza." Regional pride and the European experiment appear to be intertwined, just as Germany would like to see its political entity merged with a European entity, Spain would like to see its political entity merged with the European entity, because of a searing interwar period. Rajoy would genuinely like to see the European experiment go forward as he made the decision to accept EU aid.
Grouped Articles
Wall Street Journal 09/28/2011
Spain Emerges From Recession but Sees More Austerity Ahead
Wall Street Journal 09/23/2013
Spain Plans to Burn Its Bridges to Keep Vacationers on the Job
Wall Street Journal 02/08/2012
Mariano Rajoy of Spain Steps Up in Debt Crisis
New York Times 06/10/2012
EU: Spain Banks Will Be Monitored
Wall Street Journal 06/11/2012
Spain's Handling of Bankia Repeats a Pattern of Denial
Wall Street Journal 06/11/2012
Spain's troubled banks- Caja de Ahorros del Mediterraneo
03/11/2011
Grouped Articles
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
Wall Street Journal 12/07/2011
The Real Threat Facing Spanish Lenders
BusinessWeek 11/23/2011
Spain’s banks: Horns of a dilemma
Economist 01/07/2012
Initial public offering planned for Spain's Bankia bank
03/11/2011
Efforts to recapitalize Spain's savings banks.
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 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
In Spanish, Bankia Starts Wooing IPO Investors
Wall Street Journal 07/01/2011
A detailed account of the unfolding crisis at Bankia bank in Spain during 2011-2014
04/01/2009
An account of the key players and the ufolding of critical events in the IPO offering for Bankia, and the unraveling of the bank in the months that followed, as the Spanish regulators and government failed to get a handle on problems and instead put their hope on an improving economy. On May 3, Mario Draghi warned about the problems at Bankia in Barcelona. On May 4, the heads of Spain's largest banks BBVA, Banco Santander and Caixa, told the government it had to takeover Bankia, setting in process the events leading upto the acceptance of $125 billion in EU aid to recapitalize Spain's banking system. Bankia was put together from seven failing cajas savings banks. The problems related to the housing bubble are seen throughout the cajas savings banks.
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
Wall Street Journal 09/28/2011
The Pain in Spain Falls Mainly on the Cajas
BusinessWeek 02/25/2010
Economist 05/29/2010
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Spain's banking officials, lack of prudent oversight over the banks and bad loans from the real estate bubble
02/22/2011
Jaime Caruana, Rodrigo Rato and Vinals are senior Spanish banking officials who worked for the central bank and at the IMF. Caruana is head of the Bank of International Settlements in Bases (BIS), and Vinal heads a department at the IMF. Rato resigned from Bankia bank after its takeover by the government. Experts say they failed to exercize proper oversight of Spain's banking system and in their positions at the IMF failed to draw early attention to the problems.
Grouped Articles
Investors in Bankia to Sue Bank of Spain Over Losses
New York Times 05/09/2013
Wall Street Journal 09/28/2011
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Rodrigo Rato Resigns as Executive Chairman of Bankia
New York Times 05/07/2012
Spanish Officials Hailed Banks as the Crisis Built
New York Times 06/26/2012
Spanish Woes Cast Rescue in New Light
Wall Street Journal 06/20/2012
Rescue of Spain's banks with a $125 billion committment from the European Financial Stability Facility (EFSF)
02/25/2010
EU finance ministers persuaded Spain to borrow from the EFSF and place the money in a special fund intended to recapitalize its banks. The IMF will provide some oversight over the banks but no conditions or oversight will be imposed on Spain only on its banking system as a compromise. Problems in the banking system arise from a housing bubble in Spain and failing cajas savings banks. Spain has already committed to adhering to fiscal deficit targets on a longer term basis with the EU. This makes it a rescue of the banks more than a bailout of the kind deisgned for Greece, Ireland and Portugal.
Grouped Articles
Wall Street Journal 08/08/2011
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
The Pain in Spain Falls Mainly on the Cajas
BusinessWeek 02/25/2010
Economist 05/29/2010
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Spain requests bailout help - The Washington Post
Washington Post 06/10/2012
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 banks
07/09/2010
Grouped Articles
Spanish Banks More Vulnerable Than Italy's
Wall Street Journal 07/13/2011
Spain's banks: Two cheers, three tiers
Economist 10/02/2010
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Loan Growth Suffers at Spanish Banks
Wall Street Journal 11/13/2015
Spain to Approve Cajas Regulatory Overhaul
Wall Street Journal 07/09/2010
Crisis Awaits Worldâs Banks as Trillions Come Due
New York Times 07/11/2010
Spain's banks conversion of deposit holders into equity holders and the risks associated with this move.
07/13/2011
Grouped Articles
Spanish Banks More Vulnerable Than Italy's
Wall Street Journal 07/13/2011
Wall Street Journal 09/28/2011
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Spanish Banks Find New Source of Capital Comes With New Kind of Risk
Wall Street Journal 04/03/2012
Spain's Bank-Investor Ties Stir Worry
Wall Street Journal 05/09/2012
Spain Tries to Calm Fears About Ailing Lender
New York Times 05/17/2012
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 cleanup of bad bank assets under prime minister Rajoy in 2012-2013
09/28/2011
Grouped Articles
Wall Street Journal 09/28/2011
Spain Emerges From Recession but Sees More Austerity Ahead
Wall Street Journal 09/23/2013
Spain Weighing a Fast, Costly Cleanup of Banks
Wall Street Journal 12/07/2011
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
Bankia management
07/01/2011
Grouped Articles
Investors in Bankia to Sue Bank of Spain Over Losses
New York Times 05/09/2013
Spain's Bankia Returns to Profit
Wall Street Journal 02/04/2014
Rodrigo Rato Resigns as Executive Chairman of Bankia
New York Times 05/07/2012
Spain Readies New Push to Shore Up Banks
Wall Street Journal 05/08/2012
Spain Tries to Calm Fears About Ailing Lender
New York Times 05/17/2012
Europeâs Worst Fear: Spain and Greece Spiral Down Together
New York Times 05/20/2012
Spain macroprudential supervision of its banking system once lauded now turns out to be "timid" and false, could the same be true for China?
07/18/2012
Spain's central bank had a reputation of providing good supervision for Spain's banking system. The problems at the Cajas Savings banks and the current assessment after the request for $125 billion in EU funds for Spain's banks shows how this turned out to be false. Does China face a similiar problem with its housing bubble. The U.S., UK and Spain, failed to control and manage the effects of a housing bubble, can China be a lone exception? Rapid growth enabled China to cope with bad loans in the banking system, with slower growth, a weak European market for exports, and a stimulus that is about one eighth the size in annual investment- one trillion yuan over 4 years in the current stimulus compared to 4 trillion over 2009-2010 in the last stimulus plan. Can China manage this bubble, does it have the experience managing this type of problem or has it papered over the problems as Spain did? This has repercussions for industries and countries from the export sector in Germany, Australia and Brazil to industries such as the German automobile industry, and companies such as Caterpillar.
Linked Articles
As China’s economy slows, real estate bubble looms - The Washington Post
Washington Post 10/03/2012
Spanish Official: Slow Reaction to Crisis
Wall Street Journal 07/18/2012
The slow response of Spain compared to the more aggressive aproach of France
07/18/2012
The contrast between Spain's lack of strong and quick action for its banking problems and France's aggressive approach to its debt problem. Spain's problems come from the housing bubble and bad loans in parts of the banking sector especially the cajas savings banks. The lack of strong and early action by bank supervisors at the central bank and the government to cleanup the banks created conditions requiring a bailout. The problems in France which did not experience a housing bubble were the result of slow growth, rising debt and deficits. France took an aggressive approach to tackle these problems, with shared sacrifices, and setting a goal of bringing the deficit down to 3% in 2013 with its 2013 budget.
Linked Articles
France's New Budget Focuses on Cutting Deficit
New York Times 09/28/2012
Spanish Official: Slow Reaction to Crisis
Wall Street Journal 07/18/2012
The Bank of Spain and failure to control the property and credit bubble
06/26/2012
At the same time that the Bank of Spain was being lauded for macroprudential supervision it was doing little to control the property and credit bubble. The Bank of Spain was slow to act after warning signals in 2008.
Linked Articles
Spanish Officials Hailed Banks as the Crisis Built
New York Times 06/26/2012
Spanish Official: Slow Reaction to Crisis
Wall Street Journal 07/18/2012
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