Spain to announce clean-up plan for Bankia: sources http://finance.yahoo.com/news/spains-bankia-uneasy-mix-politics-060410854.html However the sources declined to confirm reports Bankia - an agglomeration of local banks or "cajas" - would need as much as 10 billion euros ($13 billion) in capital, and it was not clear how the government, struggling to reduce its deficit, will raise the money.
Extra capital requirements for Spanish banks were announced on Friday 11 May. *** "Spain Hit By Fears On Banks, Athens" Updated May 14, 2012, 6:31 p.m. ET http://online.wsj.com/article/SB10001424052702304371504577403560325151618.html All amounts in EUR: BKIA 4.72 billion POP 2.31 billion (includes 1.70 for POP and the rest for Banco Pastor) SAN 2.70 billion Caixa 2.10 billion BBVA 1.80 billion http://finance.yahoo.com/news/bbva-lift-provisions-2-3-070024258.html http://finance.yahoo.com/news/spains-banks-detail-cost-property-192831570.html Specific details of the requirements in this Bloomberg article: http://www.bloomberg.com/news/2012-...ty-on-fourth-bank-cleanup-in-three-years.html De Guindos said banks will have a month from today to say how they will meet the provisioning requirements, which come on top of the 53.8 billion euros of charges and capital ordered by the government in the previous cleanup effort in February. The state will step in through its bank rescue fund, known as FROB, to buy shares or contingent convertible bonds of banks that struggle to meet the requirements, said de Guindos. Under the program, which he said will be profitable for the government, banks that borrow will have to pay 10 percent interest and repay the aid within five years. The âCo-Coâ bonds will be an âadequateâ way to channel FROB funds to lenders that need them, the Spanish Association of Savings Banks said in an emailed statement.
Press release regarding the conversion of preference shares into BKIA ordinary shares: From http://www.bde.es/webbde/en/ on 14 May http://www.bde.es/webbde/en/secciones/prensa/info_interes/frob140512e.pdf ***
TEXT-S&P takes various rating actions on Spanish banks www.reuters.com/article/2012/05/25/idUSL1E8GP9KV20120525 Fri May 25, 2012 1:00pm EDT RATINGS LIST The ratings below are counterparty credit ratings. ** Downgraded; CreditWatch Action To From Banco Popular Espanol S.A. BB+/Negative/B BBB-/Watch Neg/A-3 Bankinter S.A. BB+/Negative/B BBB-/Watch Neg/A-3 ** Downgraded; Remain On CreditWatch To From Banca Civica S.A. Long-Term Counterparty Credit Rating BB/Watch Pos BB+/Watch Pos Bankia S.A. BB+/Watch Neg/B BBB-/Watch Neg/A-3 Banco Financiero y de Ahorros S.A. Long-Term Counterparty Credit Rating B+/Watch Neg BB-/Watch Neg ** Affirmed; CreditWatch/Outlook Action To From Banco Financiero y de Ahorros S.A. Short-Term Counterparty Credit Rating B B/Watch Neg Banco de Sabadell S.A. BB+/Negative/B BB+/Watch Neg/B CaixaBank S.A. Short-Term Counterparty Credit Rating A-2 A-2/Watch Neg Confederacion Espanola de Cajas de Ahorros BBB-/Stable/A-3 BBB-/Watch Neg/A-3 Kutxabank S.A. BBB-/Negative/A-3 BBB-/Watch Neg/A-3 ** Affirmed To From Banco Santander S.A. A-/Negative/A-2 A-/Negative/A-2 Banco Espanol de Credito S.A. A-/Negative/A-2 A-/Negative/A-2 Santander Consumer Finance, S.A. BBB+/Negative/A-2 BBB+/Negative/A-2 Banco Bilbao Vizcaya Argentaria S.A. BBB+/Negative/A-2 BBB+/Negative/A-2 ** Remain On CreditWatch To From Banca Civica S.A. Short-Term Counterparty Credit Rating B/Watch Pos B/Watch Pos CaixaBank S.A. Long-Term Counterparty Credit Rating BBB+/Watch Neg BBB+/Watch Neg Caja de Ahorros y Pensiones de Barcelona BBB-/Watch Neg/A-3 BBB-/Watch Neg/A-3 Ibercaja Banco S.A. BBB-/Watch Neg/A-3 BBB-/Watch Neg/A-3
Apart from BKIA (recent bailout announcements) BCIV (CABK takeover saves the day) it looks like POP is the next vulnerable Spanish bank, and then maybe SAB and BKT.
Goldman Sachs on Spanish banks capital requirements http://www.zerohedge.com/news/spain-bankia-down-who-next POP 6.3 billion (more than current market cap; GS research confirms my view from earlier in this thread that POP is the next big Spanish bank in danger). BKT 1.0 billion CABK 6.9 billion SAB 0.2 billion more capital than required (I am surprised by this) BTO 3.3 billion (but majority owned by SAN) SAN and BBVA have multi-billion shortfalls, but given their large market caps, it shouldn't be a problem.
25 May Bankia announced that it will receive a 19 billion EUR bailout, of which 12 billion will be capital raised via a rights issue. http://www.bloomberg.com/news/2012-...-billion-in-state-backing-to-restructure.html http://www.bankia.com/en/information-for-shareholders-and-investors/material-disclosures/2012 Mon 11 June Spanish bank stocks open near the highs on the announcement of 100 billion EUR being made available to recapitalize banks. Specific details of the amount to recapitalize each bank (other than Bankia) should be made available on Thurs 21 June, when the Oliver Wyman and Roland Berger reports are published: "Spain said it wanted aid for its banks but would not specify the precise amount until two independent consultancies - Oliver Wyman and Roland Berger - deliver their assessment of the banking sector's capital needs some time before June 21." http://finance.yahoo.com/news/eurozone-agrees-lend-spain-100-024818587.html These two firms were hired on 21 May. http://www.bloomberg.com/news/2012-...wyman-roland-berger-to-stress-test-banks.html
Details of 12 billion EUR Bankia rights issue can be found in this PDF presentation: http://www.bankia.com/Ficheros/CMA/ficheros/120526PresentacionprensaIRingles.PDF which can be found under 26 May from here: http://www.bankia.com/en/information-for-shareholders-and-investors/material-disclosures/2012