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Spanish banks need €51B-€62B in extra capital to survive a serious economic downturn,...

  • Thursday, June 21, 2012, 12:32 PM ET
    Spanish banks need €51B-€62B in extra capital to survive a serious economic downturn, independent audits from consultancies Roland Berger and Oliver Wyman show. The government will now use the assessments to determine how much it will ask for out of the €100B that the EU has made available to rescue the sector. The Bank of Spain says the country's three largest banks don't need extra capital.
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This news story has 7 comments:

  • How is a strategic consultant such as Roland Berger or Oliver Wyman qualified to assess such complex financial considerations? It's not their job.
    21 Jun 2012, 12:43 PM Reply Like
  • They are not qualified to conduct the assessment...which is probably why they were hired in the first place.

    The folks who hired them can blame the failure on the companies (i.e. the companies botched the analysis), the companies can blame the failure on the folks who hired them (we were never qualified to conduct the analysis in the first place). Besides, I'm sure the reports themselves contained all sorts of qualifiers as well (i.e. this report contains X assumptions, and should not be relied upon for real decisions, etc.).

    Everyone wins, except for the millions of taxpayers who bailed out the banks and the billions who participate in the global economy. OK - so there are only a few very self interested parties who win in the very short term...
    21 Jun 2012, 01:28 PM Reply Like
  • Too many skeptics just like TARP.
    21 Jun 2012, 01:54 PM Reply Like
  • Lots of skeptics because there is a lot to be skeptical about...
    21 Jun 2012, 02:16 PM Reply Like
  • Zerohedge has the full stress test report up:

    http://bit.ly/L8FT8h

    Let's just say that the optimistic "we only(!) need 62Bil EUR" scenario relies on the banks having a P/E of ~1.5. Perfectly reasonable, right?
    21 Jun 2012, 02:26 PM Reply Like
  • An assumption of a Spanish bank having a P/E of ~1.5 in a country with negative growth and a dismal outlook?

    I'm more than slightly disgusted...
    21 Jun 2012, 02:30 PM Reply Like
  • OH u of little faith, wassa matter, doncha trust me?

    LISTEN sh h h h , while I tell you what I found out. Most of the pundits say the market is gonna fluctuate.

    Say it ain't so.

    Capt. Brian

    Oh go read my old posts, nothing has changed in my mind, except my net worth, ( it is in cinders from CIM )

    Hey buddy, I used to build factories, can you spare me a dime?
    21 Jun 2012, 08:57 PM Reply Like
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