Santander regained some value on the stock markets yesterday as it hit a symbolic figure. The bank's stock price is once again equal to its book value, which is the theoretical amount that it would earn if it liquidated all its hard and liquid assets.
Along with BBVA, Bankinter and Bankia, Santander is now worth at least 80% of its book value. Why are the stock prices of some of these banks lower than their total assets are worth? Because many investors are afraid of what will happen as these banks try to recapitalize.
But these fears are dissipating as international investors begin to realize what Spanish banks have in their portfolios. They have boosted cash stores around 50% since the beginning of this year.