Thursday, February 02, 2012

Spanish Cajas get new regs - must find another €50 Billion!

The Houston Chronicle carries the story from AP which is linked from here. It opens with the following which carries the main gist of the latest EU crumbling:

— Spanish banks must raise an additional euro50 billion ($65.5 billion) to cover their exposure to toxic real estate loans and assets accumulated during a construction boom that went bust with the financial crisis, according to new regulations unveiledThursday.

Banks unable to meet the new provisions to cover troubled holdings will have the option of presenting merger plans to the government by May and could get government assistance from an existing bailout fund that will be strengthened with an addition euro6 billion, said Economy Minister Luis de Guindos.



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