The omens of doom continue for Spanish banks. According to the Expansion newspaper, the American rating agency Moody's is preparing a new mass downgrade on the institutions of the Iberian country. The announcement should arrive today. A large part of the new valuations should slide into speculative territory, that of the so-called junk bonds. The only banks that could save themselves are Banco Santander, BBVA and CaixaBank.
It is a period of particularly lively activity for Moody's, which last week has reduced the rating of 15 of the major institutions credit of the world.
Meanwhile, this morning the Government of Madrid formalized the request for aid from the Eurogroup to support the banking sector, overwhelmed by toxic securities linked to the real estate bubble. To know the exact amount of amount needed for the recapitalization, however, we will have to wait until next July 9th.
So far there has been talk of aid of between 60 and 70 billion euros, but Brussels has already made it known that they are available to guarantee aid of up to 100 billion. Today the vice president of the EU Commission, Olli Rehn, assured that the agreement will be concluded within a few weeks.
