Title: Mcgowanjm Wire 2012 Source:
[None] URL Source:[None] Published:Feb 26, 2012 Author:Various Post Date:2012-02-26 09:15:13 by A K A Stone Keywords:None Views:1371529 Comments:2390
" Spain Nationalizes BFA and 45% of Bankia; No Bid for CatalunyaCaixa, Bank Worth Less Than Zero; Der Spiegel: Germany Fears "Bottomless Pit"
The implosion in Spanish banks continues. On Wednesday, Spain nationalized BFA, the 8th nationalization since the start of the crisis.
After sinking 3 billion into CatalunyaCaixa, Spain tried to privatize the mess but there were no offers at zero euros. Clearly CatalunyaCaixa bank is worth less than zero.
Meanwhile Der Spiegel reports "Bundesbank has no idea of what is happening in Spanish banks". Mish readers do. The Spanish banking system is without a doubt bankrupt."
What we’ve been seeing in the last ten days in the EU as a whole is growing evidence that banking debt exposure to intrabank loan clients and ownership of ClubMed subsidiaries are vying with sovereign debt to be uppermost in the minds of nervous investors. And sources in an around Mario Draghi’s ECB continue to hint that the Italian Stallion is nearly out of oats when it comes to eurobank support.
This is partly because all his ‘money’ (loose and somewhat inaccurate term) is going into manipulation of the bond markets discreet purchases of excess bonds left lying around in places like, for example, Spain. The bond yields there on 10-year notes went above 6% again yesterday.
Spain is going to go bang pretty soon. At this rate, there won’t be any FiskalPakt applicants remaining solvent by the time the Fuhrerin gets it together. (And in Ireland, the tide is turning against FP ‘Yes’ campaigners)."
