Mish/ Mike Shedlock – Spanish Banking Audits Delayed Until September; Another €50 Billion Likely Needed – 20 June 2012

Via Google Translate from La Vanguardia, please note that Spanish banking audits are delayed until September

Audits of Spanish banks, which should conclude in late July, will be delayed until September in order to get “further examination”, as reported by Efe sources close to the process.

John Ward – Spain Crisis Exclusive : Dash For Banking Consolidation “A Recipe For Worse Disaster” – Insinders La Caixa Singled Out As”Heading For The Rocks”- 15 June 2012

Playing with fire in Spain

Spanish banks have borrowed more money from the ECB than any other country – €227.6 billion. Between them, Spain’s three biggest banks Banco Santander, BBVA, and La Caixa, “have combined assets of about $2.7 trillion. Spain’s three biggest banks are nearly twice as big as the entire Spanish economy. Now it looks like the third of those is in dire straits.

Mish/ Mike Shedlock – Fitch Managing Director Says Spain Will Miss Budget-Deficit Target By “Substantial Margin”; Yields In Spain And Italy Soar; Spanish 10-Year Yield Hits Record High 6.83% – 12 June 2012

The selloff on Spanish and Italian bonds continued today with yields in Spain hitting euro-era record highs.

On the deficit side of matters, I do not believe Spain will meet its budget-deficit targets, and neither does Fitch.

Mish/ Mike Shedlock – Rajoy Proclaims “Victory, Says It’s Not A Bailout “It’s A Credit Line”; Existing Bondholders Subordinated – 10 June 2012

In the too stupid to make up category, Rajoy defends ‘victory’ for EU credibility

Mariano Rajoy, the embattled Spanish prime minister, has defended the eurozone’s €100bn bailout for Spanish banks as a victory for European credibility.

He repeated Spanish assertions that the EU aid was different from the full bailout programmes previously provided to Greece, Ireland and Portugal by the EU and the International Monetary Fund, which involved detailed austerity targets and monitoring.

Mish/ Mike Shedlock – Spain Blinks: Accepts €100 Billion Baillout Vi EFSF/ESM; Frob To Receive The Money – 10 June 2012

After months of denials, a short Eurogroup Statement shows Spain will submit a formal request to Brussels for a bailout.  Here is the statement in full.

The Eurogroup supports the efforts of the Spanish authorities to resolutely address the restructuring of its financial sector and it welcomes their intention to seek financial assistance from euro area Member States to this effect.

Mish/ Mike Shedlock – Bailout Lite? There’s Really No Such Thing; €30 Billion Needed? It’s Now €100 Billion; Contagion Of Economic Idiocy – 9 June 2012

A few days ago Spain was purportedly going to need another €30 billion to €70 billion to recapitalize Spanish banks. I suggested the amount would be at least triple that and it did not take long to do so.

BBC News – Spain’s Bankia Seeks 19bn-Euro Bailout From Government – 25 May 2012

Spain’s fourth-largest bank, Bankia, has asked the government for a bailout worth 19bns euros ($24bn; £15bn).

Bankia also restated its results – now saying it made a 2.98bn-euro loss for 2011 rather than the 309m euros in profit it announced in February.

Read the whole story at : http://www.bbc.co.uk link to original article

Moody’s Downgrades 16 Spanish Bank Ratings – 18 May 2012

The Associated Press

Moody’s Investors Service is downgrading the ratings of 16 Spanish banks because of the country’s worsening financial picture.

Moody’s lowered its rating by one to three notches on the long-term debt and deposit ratings for 16 Spanish banks and one U.K. subsidiary on Thursday.

Stephen Cook – Spanish Withdraw 1 Billion Euros! French Government Slashes Pay By 30% – 17 May 2012

Stephen: It’s all happening in Europe today. I mean, we have long been told things would happen in the blink of a eye…

Following the Greeks withdrawing over 800 million Euro from their banks yesterday, the Spanish have grabbed their withdrawal slips, headed for their banks and started removing their money, too. Over 1 Billion Euro out already today.

Mish/ Mike Shedlock – Spain Nationalizes BFA And 45% Of Bankia; No Bid For Catalunyacaixa, Bank Worth Less Than Zero; Der Spiegel : Germany Fears “Bottomless Pit” – 10 May 2012

The implosion in Spanish banks continues. On Wednesday, Spain nationalized BFA, the 8th nationalization since the start of the crisis.

After sinking 3 billion into CatalunyaCaixa, Spain tried to privatize the mess but there were no offers at zero euros. Clearly CatalunyaCaixa bank is worth less than zero.

Meanwhile Der Spiegel reports “Bundesbank has no idea of what is happening in Spanish banks”. Mish readers do. The Spanish banking system is without a doubt bankrupt.