[Chopera]

bust

http://economia.elpais.com/economia/2012/10/02/actualidad/1349203528_010340.html

… with liabilities of €1.6bn

[Anonymous]

http://www.marketwatch.com/story/alteco-mag-seek-creditor-protection-report-2012-10-02

Interesting to see how things like this amplifies. As I have said earlier this is going to affect countries with high external debt per GDP in the longer run.

England “500%” and Ireland “1300%” are two sore thumbs but at the same time lots of others have problems.

http://www.usdebtclock.org/world-debt-clock.html

For every instance where companies like this goes belly up it will transfer external debt to the normal public debt to gdp. That is why one shouldn’t disregard external debt when the assets they own for that debt is worthless as is the case these days.

UK area
RBS

France
Natixis

Germany
Eurohypo

Spain
The rest

[DBMarcos99]

An article on this in the Telegraph

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9585303/RBS-facing-loss-after-Spanish-property-firm-collapse.html

I did think of mentioning this the other day. Same as in Greece (where they were heavily exposed to Greek debts) we see RBS again. It’s getting to the point where if you ever see one of the investors is RBS, then don’t be surprised if you see a default or bankruptcy.

[angie]

Apart from RBS, what is the indebtedness of other UK Banks to Spanish property and other debt? 🙄

Will this now open the can of worms on UK’s and other countries’ Bank debts with overseas property or is this all out in the open anyway? 🙄

[DBMarcos99]

@angie wrote:

Apart from RBS, what is the indebtedness of other UK Banks to Spanish property and other debt? 🙄

Will this now open the can of worms on UK’s and other countries’ Bank debts with overseas property or is this all out in the open anyway? 🙄

I understand it’s the banks’ exposure to govt bonds if they default and take a “haircut”, that is of main concern (as with Greece – it’s why there is pressure on Spain to take a bail-out instead of losing access to credit on the markets and then defaulting). A few hundred million is small cheese compared to those exposures.
Of course, if you have an independent currency like the UK, you can print or QE, to prop up the banks like RBS.

[DBMarcos99]

More on this story

http://www.bloomberg.com/news/2012-10-03/gecina-holding-firms-of-rivero-soler-seek-creditor-protection.html

[Chopera]

RBS = the UK government = you the tax payer

[Author]

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