Saturday, November 19, 2011
No worries, the ECB is here to help
"Spanish banks, under pressure to cut property-backed debt, hold about 30 billion euros ($41 billion) of real estate thatâ€™s â€œunsellable,â€ according to a risk adviser to Banco Santander SA (SAN) and five other lenders". " The banks will face increased pressure if Mariano Rajoy becomes prime minister as expected after national elections on Nov. 20. The Peopleâ€™s Party leader has said the â€œclean-up and restructuringâ€ of the banking system is his top priority as he seeks to fuel economic recovery by boosting the credit supply". But land â€œin the middle of nowhereâ€ and "unfinished residential units will take as long as 40 years to sell", Pablo Cantos (Mac Group) said.