Yesterday, the Frob (a federal fund designed to help Spanish cajas and banks deal with new financial regulations) placed less debt than expected. It captured 1.75 billion of 3 billion predicted and paid 5.52%.
Although they are counting on backing from the United States, Spanish citizens are not too sure about how credit-worthy their country is, particularly in regard to shares that will support the national financial system.
On the one hand, the government´s campaign against the Bank of Spain might be exacerbating problems within the industry, because they are raising the specter of populist measures against the camas and banks.
On the other hand, results from recent stress tests will be finalized soon. To regain lost credibility, the stress test results are going to put a lot of pressure on the Spanish bank, which is the most debt-plagued. We have not done enough to repair our country?s financial system, and now we are going to pay dearly.
Translated and edited in English by Brandon Dyches and Jose L. De Haro
