How much will the bad bank cost?

On November 16 the government will approve a bill to put the bad bank into effect. It will be called Sareb (from the Spanish name Sociedad de Gestión de Activos procedentes de la Resestructuración Bancaria), and shares owned by the biggest real estate companies won't be included.

This is good news for these companies, because as a result they won't be hindered by the costs of the bad bank and will be able to restructure their debt. Sareb will start to work as soon as the bill is passed, but until November 29 the price of the shares will not be set. This question is critical, because the success or failure of the bad bank will depend on how much it cost and whether or not it can balance these costs so that neither tax payers or the financial sector bears the heaviest load.