Yesterday Cyprus, Today Spain, Tomorrow UK…

25 Mar

If you have any investments in the EU – get out while you can…

Spain Brings the Pain to Bank Investors

The government had warned that the losses imposed on investors at the nationalized banks would be significant. The FROB had ordered external valuations, which found that their liabilities far exceeded their assets. In Bankia’s case, an evaluation found that it had a negative value of €4.15 billion.

Nonetheless, imposing losses on investors is one of the politically difficult steps required of Spain in exchange for just over €40 billion in EU aid because most of those who made investments in the troubled lenders were small depositors.

Many of these small savers have taken to the streets to protest their expected losses in recent months, claiming they were misled into believing that that they were buying low-risk savings products, not risky bonds or shares.

Should be a full blown EU banking “crisis” by Friday…

WSJ, BBC

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