Spain's toxic bank gets more priveledges

Since they were created as tools to help fix the financial crisis, the Frob and SAREB have received tax priveledges, some of which were handed down from past governments. For example, the SAREB does not have to pay taxes on asset sales.

On Saturday, the Ministry of the Economy took one more step along these lines. In a law about arbitrage and liquidity for preferential shareholders, the SAREB is protected from real estate bankruptcy. That is to say, it will get its money back before other creditors in case of a bankruptcy. SAREB is funding with public tax money, and that is already a sufficient advantage to keep it from getting priority treatment compared to other creditors that are paying for SAREB with their tax money.