According to Elena Salgado, Spain´s Finance Minister, Ireland prompted capital markets growth for financial firms. And some think that with another series of unlucky breaks for Spain, Greece could derail with the savings bank IPOs
The first victim in this ordeal to put itself on the line for Greece hasn´t been a savings bank, but the oldest Spanish bank, which put half of its shares of regional debt on the market.
Santander couldn´t avoid disaster when the 500 million they were unable to place with investors ended up with the other firms managing the deal.
And this is a sign that capital markets are once again putting pressure on Spain, whose risk premiums are already better than 250 basis points.
This is already a dangerous level considering Bankia and Banca Civica´s intention to go public. The climate could get worse during the next few weeks if Europe´s discord about the second stimulation package in Greece doesn´t improve, or the new Portuguese government tarries in reforms that Brussels has asked for.
