Rescuing Spanish Banks
Mark Whitehouse & Paula Dwyer, Bloomberg | June 5, 2012
Th
e EU must find a way to salvage its banks and should start with Spain. ++ Spain's banks are paralyzed amid losses incurred by real estate loans. ++ An injection of capital, 120 billion euros, is required. ++ The situation is only getting worse, as bank credit tightens, further increasing banks' potential losses. ++ Spain's response vis-à-vis the government-induced bank mergers has not resolved its needs. ++ Since Europe's bank have 186 billion euros in claims on Spanish banks, Europe must take action and create a bank recapitalization model.
