Blogging from the Highlands of Scotland until I return to the Murcia region of Spain
in the Autumn for a month or so

'Fair and softly goes far' - Miguel de Cervantes

Thursday, 23 August 2012

Spain drafts law to ease liquidation of troubled banks

The Spanish government is reportedly about to pass legislation to give enhanced powers to its banking regulators (the Bank of Spain and Fund for Orderly Bank Restructuring [FROB]) to intervene in troubled banks at an earlier stage, even in a bank that 'continues to meet liquidity and solvency requirements, if it is "reasonably foreseeable" that it will not continue to do so', according to a leaked draft of the legislation; the subject bank would then have 10 days to submit plans to overcome the forecast difficulty, which would be subject to FROB approval. The draft contains a number of provisions concerning the treatment of bad loans and troubled banks, as well as with the rights and liabilities of shareholders, partners and subordinated creditors, with particular impact on preference shareholders (amongst whom are many ordinary customers who were prevailed upon to invest in them).

PS/ (Added Monday 3SEP2012 20.26 BST) A scam outfit, apparently relating to computer 'liquidation' sales has attempted on several occasions to post 'marketing scam' comments here - to whoever is behind this, please don't waste your time! Your spurious comments will NEVER be published in my blog - I operate an active comment moderation policy to weed out such trash.

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