Monday, Jul 05, 2010

Spain's mortgage delinquency fudge

Bloomberg: Spanish Savings Banks May Be Hiding Home-Loan Losses, CreditSights Says

Spanish savings banks may be hiding losses on home loans by taking non-performing mortgages out of securitized transactions, according to CreditSights Inc. By carrying the bad loans on their own books the so-called cajas sidestep downgrades to their mortgage-backed securities, the independent bond research firm said in a report. The regional lenders helped fuel the nation’s real-estate bubble, which burst after the collapse of the U.S. subprime market.

Posted by alan @ 08:27 PM (848 views) Add Comment

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