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Expect Another "Bad Bank" Bailout in Spain
Townhall.com ^ | July 15, 2013 | Mike Shedlock

Posted on 07/15/2013 5:35:18 AM PDT by Kaslin

Spain's bad bank, Sareb, has plans to unload 45,000 distressed properties in five years, over 7,500 of them in 2013.

In theory it is easiest to dump more properties in the beginning because there are likely some relative bargains for the early property hunters.

The actual results are laughable. Sareb unloaded 550 home in January-March, then and only anther 150 in the next two months, a grand total of 700 through June 1.

Humorous Details of Sareb's Property Assets 

Here are some excerpts (translated) from Guru'sBlog report Havoc in the Bad Bank (SAREB).


Expect Another Bad Bank Bailout

Guru concludes (translation slightly modified)...

Clearly the pace of sales is very far below the business plan. With estimated operating costs of 1.7 billion euros (management costs over the interests of balance financed 92% with debt), one does not have to be a whiz to guess that unless some fantasy book scene happens, Sareb losses in 2013 will be hundreds of millions of euros.

Sareb is not solvent. Sometime before 2014, the Bad Bank will have to raise capital for accounting purposes.


TOPICS: Business/Economy; Culture/Society; Editorial
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1 posted on 07/15/2013 5:35:18 AM PDT by Kaslin
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