Bloomberg – Dakin Campbell – Spanish Banks Need More Capital Than Tests Find, Moody’s Says – 2 October 2012

Spain’s banks face a capital shortfall that could climb to 105 billion euros ($135 billion), almost double the estimate the government provided last week, according to Moody’s Investors Service.

The nation’s lenders may need infusions of 70 billion euros to 105 billion euros to absorb losses and still keep capital ratios above thresholds outlined in legislation last year, Moody’s analysts wrote yesterday in a report. That compares with the 53.7 billion euro shortfall found last week after officials commissioned a stress test designed to lift doubts about the financial industry’s ability to withstand losses.

Oct. 2 (Bloomberg) — Bill Blain, a strategist at Mint Partners, talks about the outlook for Spain’s banks and bond markets, and the political impact of a bailout request. He speaks with Mark Barton on Bloomberg Television’s “On the Move.” (Source: Bloomberg)

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