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Breakingviews: Bankia's bailout is a mixed blessing

Monday, May 28, 2012 - 04:33

May 28 - Bankia's €19bln bailout is a double-edged sword, implying other weak lenders are also short of cash, says Reuters Breakingviews

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It's sort of lesson to president of the banks -- without commentary on -- is breaking views and solid -- yet is it swapping grain out of government sold. And that could have -- -- you bank bondholders lesson taxpayer -- with me is Robert -- morning about hi -- you got kids -- a bank yet nineteen billion. What what. I know these these came out on Friday but what what -- take on this and Manhattan -- removed from now. But the news broke late night till products that we put out for this because it was so important an issue we put -- a special a piece on -- that the senate. We got back that. But go about that tea but it's clearly a story which is is about a patent side of this just to remind people well -- -- bank yet. The bank hit bailout seems to be caught generous seems to be. Enough money that. It took to sort of it's -- problems out of this. Birds -- the recently. Foam it's. -- banking conglomerates it would member news. I gather together a final 66 more bags this is enough money that that facing -- go off the metal new management have done very well. But is double -- sold for two reasons the first is that. It's still not clear away this money's coming from now clearly it's coming from the government but I'm I'm and it's easy when -- -- -- I think will. That's what we kind of -- at the seems to be some degree I agree guys around them whether they can somehow small. Bones that they re right he's weak bones that must have some back in DC they'll the F has the -- that. Or indeed via sensor that seems to be some that's about how old. But why people sort of how this money. Is rice and whether -- it doesn't rebound back on ultimate treat. I'm so that's that's -- the -- what what what what parallel trying to trying to work out some structure of this deal. Aids is is still a bit -- the other parts of the get a read to this double edged sword if you'd like is that yes back here -- got lots of money. Out of this by lap but what does that mean for the other financial institutions banks -- financial. It's agenda it's primarily it back because if if I'm -- to deal with this much money because states that policy is such. -- state of. We're I don't know what about the most alarming thing I found was this. Bailout fund -- money it's got about fraud fraud has about five point three billion years of cash last. And estimates saw that it needs fifty to a hundred. Yeah that's the -- yet accidentally and a button and say say -- these debts are gonna go back -- about -- policy. Well yes what would Google they will but. Why -- -- gonna get money for okay. This peace time. Yet connect your. Sneak out Pak problem that bit about -- it's very and actually from the from for the -- it Africa and it works is not Ab abs absolutely. It think -- stuff you put here and that the Rochus of my -- like there is. In everybody. Is can. The smelly place violent. I would really to get money from from from every way. And just because your senior -- hold. In a bank doesn't mean society you should feel it's a tool or perhaps it means that you should be put him behind to -- pot -- Of the of the costs. And also -- blog -- -- losses and a senior bank creditors. Maybe it may have to be. Among those who does he side does like from the kind of woods because. They want to see stuff all -- wealthy nearby provinces. Going to have to pile up I -- up two point. I lend money to banks up to one deposits rose to lend money to banks in a way to -- got to draw the lines and and how you gonna ring fence is total and on this in a way which. Means that can be an old -- -- -- -- to these -- bouncy strong than a disorderly one front that is absolutely very worrying question that side facing you now. Okay Robert thanks off about. Robert Cole I'm that is it for now -- if you watch our US breaking -- show comes on every day twelve studies and 1730 PSE Hugo Dixon's. Back column. I'll discuss that with him at 1145. London time today I'm -- of trouble this is --

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Breakingviews: Bankia's bailout is a mixed blessing

Monday, May 28, 2012 - 04:33