Spanish banks gave billions of dollars
to property developers trying to cash in
during the boom years that bubble has
burst spectacularly leaving Spanish
banks with huge debts the government is
already nationalizing the ailing lender
Bankia at an estimated cost of more than
25 billion dollars Tobias blattner his
chief of economic research at daiwa
capital markets venky is really just the
tip of the iceberg after all because we
know that they have a still huge
massively bad loans on their balance
sheets so I think they're in a very very
critical stage so far and I think we
have seen as the approach that the
Spanish government has taken so far was
in a way not enough in ready to convince
the investor that the Spanish banks are
safe spain's economy minister luis de
guindos denied reports that his country
is seeking international support for
spanish banks well water but they're not
i'll repeat there was not a single
question about an eventual rescue an
Irish Catholic Spain wants to avoid
following the path of countries like
Greece and Portugal in tapping the e
u--'s bailout mechanism says Fidel Peter
Helmer a trader with how can al kaiser
private bank this video be tightened SS
rating from it would mean that spain
rating would be further downgraded they
want to avoid that because above all
dilapidated banks are plain usury my
rodenbach will shrewd under me Sierra
the European Central Bank injected 660
billion dollars worth of liquidity into
the continents banking system in
February that medicine appears to be
wearing off six German banks had their
credit rating downgraded by Moody's
Wednesday over fears of their exposure
to bad debt it comes as the European
Commission unveils plans to avoid
taxpayer-funded bailouts in the future
Michel Barnier is the EU commissioner
for internal markets what a sec don't
care move it all in the banking sector
we want more surveillance more
prevention more caution and we don't
want taxpayers to pay any longer nor
brew critical kebab Bay those proposals
would not come into law until 2014 at
the earliest and analysts say they do
little to put out the fires currently
raging in Europe
banking system Henry Ridgwell the VOA
news London