Again, nothing against the Spanish, although snubbing Elizabeth Regina II on her Diamond Jubilee seems a bit tacky.
From Real Time Economics:
Provisioning for Spanish Bank Losses Is Insufficient, IIF Says
Spanish banks’ total loan losses could range between 218 billion and 260 billion euros, more than currently-expected provisioning, the Institute of International Finance predicted Monday.A billion here and a billion there and...
That suggests the government will have to step in to support “a significant number of banks, mainly the cajas,” the institute said, referring to local Spanish banks.
The group represents more than 400 of the world’s largest private financial firms, recently negotiated an historic Greek debt restructuring on behalf private bond holders.
Although it estimates needed additional capital injections will be around 50 billion to 60 billion euros in its adverse scenario — assuming around 190 billion euros in provisions — the IIF notes that’s only around 5% of Spain’s gross domestic product. That’s well shy of the recapitalization needs in the Ireland case, which represented 33% of GDP....MORE