Maybe more ominous than rising yields on 10-year Spanish and Italian debt are sharply higher...

Maybe more ominous than rising yields on 10-year Spanish and Italian debt are sharply higher rates on the 2-year paper. Both are about 120 bps higher than they were at the time of the ECB's 2nd LTRO (late Feb.). Presumably, both countries' banks loaded up at this end of the curve, meaning 6 weeks later, they're sitting on some large losses.

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Comments (4)
  • slard271
    , contributor
    Comments (64) | Send Message
    I thought that's what taxpayers were for? To absorb losses?
    13 Apr 2012, 10:33 AM Reply Like
  • dogrun19
    , contributor
    Comments (2) | Send Message
    Just like the the panic of 2008-- all banks will fail!!!! whoops that didn't happen did it--the stock price may go up and down but survival questions for this bank seem silly.
    13 Apr 2012, 11:14 AM Reply Like
  • amkthetraveller
    , contributor
    Comments (5) | Send Message
    I am a German, living in England and Spain and investing only on the NYSE. Why are the shares so low? Is it because SANTANDER is a
    Spanish Bank? Should one not consider that the Bank is by now the
    13th largest in the world, and incomewise depends less and less on
    Spain. They are expanding in the UK,Poland,Germany,USA and
    important substantially in South America, from where over 25% of their
    net income comes already.
    I believe the shares are A REALLY GOOD BUY now they are under
    $ 7.-
    13 Apr 2012, 05:31 PM Reply Like
  • Garfield23
    , contributor
    Comments (154) | Send Message
    What healthy banks needs to borrow half a trillion dollars? None. - These Spanish banks are dmamged beyond repair. The only solution is bankruptcy and losses.


    Prepare for a calamity this week.
    16 Apr 2012, 10:50 AM Reply Like
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