What Debt Crisis? Europe Considers a Spanish Bank Rescue

 According to Businessweek it may be the scariest chapter yet in Europe’s three-year debt crisis. After days of increasingly grim news from Spain, European finance ministers have scheduled a June 9 conference call to consider a possible rescue package for Spanish banks.

According to people briefed on the planned call, the discussion will focus on recapitalizing lenders hit hard by the bursting of Spain’s real estate bubble. That’s sure to be costly: Fitch Ratings, which on June 6 cut Spain’s debt rating by three grades, to two steps above junk, said bailing out the banks could cost as much as €100 billion ($125 billion). Banking analysts at JP Morgan Chase put the figure at as much as €150 billion.  As the saying goes, when it rains, it pours……

Read more at http://www.businessweek.com/articles/2012-06-08/europe-considers-a-spanish-bank-rescue