Spain's Bankers Backing EU Bank Bailout

English: Agência do Banco Santander, na Avenida Álvares Cabral, em Belo Horizonte. Português: Agência do Banco Santander, na Avenida Álvares Cabral, em Belo Horizonte. (Photo credit: Wikipedia)

Spain should seek European money to rescue its failed lenders, said Banco Santander SA Chairman Emilio Botin, joining a growing number of bankers who question whether the government can manage the task on its own. Botin, the ... The Madrid- based lender's request for 19 billion euros to mend its balance sheet underlined banks' mounting losses and the strains on the state's ability to absorb them. ....“Using the mechanisms for assistance from Europe or the IMF is the best option and more and more the banking industry is taking that view,” said Juan Carlos Ureta, chairman of Renta 4 Banco SA, a Spanish bank and investment services company.“There is the risk of a possible stigma and that is why it’s so important to stress that it’s only some institutions that are in difficulties while the industry as a whole is healthy.”... 

“Spain’s problems are multi-dimensional, from having to deal with real estate to fixing the budget deficit and all at the same time,” said Jakobsen. “The idea that you can solve the situation with 40 billion euros of European money for the banks makes no sense.”...

More Spanish banks are in favor of seeking European funds for ailing lenders because neither the banking system nor the government can afford to absorb the losses, said Ureta....  Bankia writedowns cast doubt on Spain's bank estim... Continue to read.

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