Banks being forced to cut value of properties on their books

[Chopera]

…by the new Spanish government.

Well so it says here (in Spanish):

http://www.idealista.com/news/archivo/2012/01/11/0380433-el-gobierno-impondra-un-duro-recorte-a-la-banca-en-el-valor-de-sus-inmuebles?xtor=EPR-76-%5Bboletin_20120113%5D-20120113-%5Bnoticias__01%5D-%5B%5D-%5B%5D

Talks about chopping 30% to 50% off the values of property on the banks’ books, up to 80% off urban land, and nearly 100% off “rustic” land 😯

I’ll believe it when I see it, but it could be time to get the popcorn out!

[Anonymous]

The million $ question is will they reduce the price or will it be another fudge. If the Banks reduce the prices & with the latest strenght of the £ we could be in business. !!!!!!!!!!!!!!!!

I for one will not shoot the messanger.

[katy]

If they reduce the prices most spanish banks will need a bail out. According to Sur Spain has just been downgraded 2 points by S&P.

[Chopera]

@katy wrote:

If they reduce the prices most spanish banks will need a bail out. According to Sur Spain has just been downgraded 2 points by S&P.

They seem to be saying that any banks unable to take the hit would be merged. I’m not sure how merging banks holding dodgy assets solves the problem though – you just end up with an even bigger bank holding even more dodgy assets.

[Anonymous]

Katy: They will need a bailout at some stage as no bank can carry on with non peforming assets.

Chopera: That will be called the bad bank by defaault as Rajoy had earlier stated that no bad bank will be set up

[Author]

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