Spanish Markets Tank Because Nobody Buys Government’s New Bailout Proposal
Jan. 25, 2011
Spain’s government has planned for a weaker bailout of the country’s local banks than first thought, only offering up €20 billion, much of it from the private market, according to The Telegraph.
The move also includes new rules on capital ratios for the country’s banks, which will now be required to hold 8% of capital as tier one, which is tougher than Basel III.
This move isn’t going to be a problem for the country’s major banks, BBVA, Santander, and Banco Popular, all of which have tier one capital ratios higher than 8%, according to Societe Generale