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The LTRO program - designed to give banks a 3-year cushion - "could evaporate in 3 months,"...

The LTRO program - designed to give banks a 3-year cushion - "could evaporate in 3 months," writes Vince Cignarella. Unable to raise capital because of low share prices, Spanish banks may have to unload recently purchased government bonds, restarting familiar waves of selling. It may not be long before the ECB is again under pressure to buy sovereign debt outright.
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Comments (3)
  • WMARKW
    , contributor
    Comments (10700) | Send Message
     
    The "Low Share Price" excuse is pure BS. The price you pay for poor management is loss of control. Make them raise the capital and see if the new owners can do any better. This is insane.

     

    It's like saying, "Hey, we can't sell all this housing inventory we have because the prices are too low and we'll take a loss." BS, I say. Go raise some capital and sell the inventory (which you will have to do one day sooner or later) and if you lose control of your bank, then tough !!!
    29 Mar 2012, 04:35 PM Reply Like
  • Hendershott
    , contributor
    Comments (1619) | Send Message
     
    Vince is fighting last years war. The ECB et. al. already decided not to let the EU banks go under. Give it up. Time to move on.
    29 Mar 2012, 06:02 PM Reply Like
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    not going to happen
    30 Mar 2012, 04:59 AM Reply Like
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