Tag Archives: frob

Unicaja gets Banco CEISS for free, taypayer pays the 525 million euro debt

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The State has approved a deal in which Unicaja, Andalucia’s biggest savings bank, takes on Banco CEISS without paying a eurocent. Banco CEISS was formed out of the ruins of Caja España and Caja Duero. It too, promptly went bankrupt. The taxpayer has so far injected 525 million euros into this trainwreck. However, Unicaja has, very sensibly, refused to accept ANY of the liabilities of CEISS. Instead, all assets of CEISS will be turned over Continue reading Unicaja gets Banco CEISS for free, taypayer pays the 525 million euro debt→

Spain creates 120 billion euro bad bank to absorb toxic assets

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Spain is to create a “bad bank” to absorb the “toxic assets” of financial entities in Spain, with an expected eventual capitalisation of around 120 billion euros. The idea is to setup a nationalised entity which will take the bad loans and empty houses off the books of the Spanish banks, allowing these banks to free up resources and improve their balance books. The million odd homes estimated to be owned by Spanish banks will Continue reading Spain creates 120 billion euro bad bank to absorb toxic assets→

Bankia is worth -13.65 billion euros (yup, that’s minus) and goes bust

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The directors of Bankia have signed off on the final internationally backed independent assessment of the worth of the bank : it’s worth -13.635 billion euros. That is, add up the assets, take away the debts, and you’re left with a hole of almost 14 billion euros. That’s a big hole. The state has confirmed that 100% of the bank will be nationalised, with immediate effect, with the state backed FROB bank fund taking over Continue reading Bankia is worth -13.65 billion euros (yup, that’s minus) and goes bust→

Spain get 100 billions euros in rescue package

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Spain is to get up to 100bn euros ($125bn; £80bn) in loans from eurozone funds to try to help shore up its struggling banks. The move was agreed at an emergency meeting of eurozone finance ministers after a conference call on Saturday. Make no mistake – this is a rescue of the Spanish state, but in a roundabout way to reassure the common investor. The State can’t afford to bail out its banks, and so Continue reading Spain get 100 billions euros in rescue package→