This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Spain To Present New Bank Clean-up Measures


MADRID (AP) â¿¿ Spain's prime minister said Monday the government will likely present this week new measures to help banks, a key source of worry over whether the country might need a financial bailout.

Mariano Rajoy gave no details but said he would not rule out lending or injecting government money into the sector if necessary.

"The last thing I would do would be to inject or lend public money but if it is necessary I would not hesitate to do it, just as other European countries have done," Rajoy told Onda Cero radio in an interview.

He said the measures would almost certainly be presented after Friday's weekly Cabinet meeting.

Spain's real estate bubble burst in 2008, saddling banks with enormous amounts of bad loans as unemployment rose and people could not pay their mortgages. The Bank of Spain says the sector has about ⿬175 billion ($230 billion) in "problematic" holdings.

The government was preparing to help out troubled lender Bankia SA, Spain's fourth biggest bank, according to El Pais newspaper. Bankia is considered to be among the worst hit by the real estate collapse with more than ⿬30 billion ($40 billion) in toxic assets.

Hours after Rajoy spoke, Bankia President Rodrigo Rato, a former managing director for the International Monetary Fund between 2004-2007, announced his resignation. He said he finished his task of restructuring the bank.

A former conservative economy minister for Spain, Rato took over leading savings bank Caja Madrid in 2010 and oversaw its merger with six other entities to form Bankia last year. The group's restructuring brought about the closure of 800 bank offices and major layoffs.

Bankia's shares were down nearly 4 percent at ⿬2.4 ($3.1 dollars)in trading in Madrid following the announcement.

The government has forced banks to strengthen their finances by merging and setting aside some ⿬50 billion ($66 billion) more in provisions this year to cover toxic assets.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs