As of Sunday morning there are no details on the Spanish bankbailout. The only information released is the amount – Euro100B. This is a nice round number. Last week the IMF suggested that Euro 40B might be the rightnumber. Now we get a deal for 2+Xs that. I think this wasorchestrated to leave the markets with the impression that massivefirepower has been garnered, and therefore the problem is nowcontained. Rubbish. I"ll hazard a guess on how this bailout may be structured: The EFSF will make a loan to the Republic of Spain. The Spanishgovernment will use this money to recapitalize the Spanish banks.The critical question is what form the deal will take. There areonly two options: 1) - The Spanish government could acquire new common or preferredshares of the banks that are in trouble. 2) - The banks that need a bailout will issue new debt securities; theSpanish central bank (or Treasury) would buy the debt instruments. #1 is the only option that should be considered. New cash equity inthe ailing banks is the only transaction structure that will resultin stabilizing Spain"s banks. I doubt that this will happen. I see the "easiest/convenient" solution as #2; moredebt. A bank capitalization structure typically has these components:.The structure of the spanish bailout could blow up the entireeuropean banking sectorThe structure of the spanish bailout could blow up the entireeuropean banking sectorThe structure of the spanish bailout could blow up the entireeuropean banking sectorThe structure of the spanish bailout could blow up the entireeuropean banking sectorThe structure of the spanish bailout could blow up the entireeuropean banking sectorThe structure of the spanish bailout could blow up the entireeuropean banking sectorThe structure of the spanish bailout could blow up the entireeuropean banking sectorThe structure of the spanish bailout could blow up the entireeuropean banking sectorThe structure of the spanish bailout could blow up the entireeuropean banking sector The e-commerce company in China offers quality products such as Silver Oxide Button Cell , Heated Clothing Battery Manufacturer, and more. For more , please visit Rechargeable Lead Acid Batteries today!
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