Monday, Jan 28, 2008
ECB aid to Spanish banks matches Rock rescue
TELEGRAPH UK: The data appear to confirm suspicions that the EU authorities have carried out a covert rescue of the Spanish mortgage banking system.
Spanish banks are issuing mortgage securities and asset-backed bonds on a massive scale to park at the European Central Bank,
Reliance on the ECB window appears to have kept the mortgage sector afloat despite the sharp slowdown in the Spanish property market and the de facto closure of the capital markets for this type of business, allowing Spain to avoid the sort of mishap suffered by Northern Rock in Britain and Countrywide in the US.
It may equal the taxpayer rescue of Northern Rock in Britain, and possibly exceed it in proportion to the overall size of Spain's economy.
Posted by dangerous trading @ 10:29 PM (188 views) Add Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
No comments have been submitted.
Be the first person to add your comment by completing the form below.