Spanish banks are no longer Spanish - they're European banks now
29 June 2012 @ 11:00
At the latest EU summit last night, we finally get some concrete action. It was agreed that Europe will essentially federalise it's banking system. So that effectively means that the Spanish banks will become "European" banks.
Under the deal, Spanish banks will be recapitalised directly by allowing a €100 billion EU bailout to transferred off Spain’s balance sheet after the European Central Bank takes over as the single currency’s banking supervisor at the end of the year.
The decision, taken by a meeting of eurozone leaders in the early hours of Friday morning, will be based on a move to put the ECB at the centre of a “effective single supervisory mechanism” for banks after an EU summit in December.
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