Small lender Banco CEISS, one of Spain’s banks that could end up in state hands, posted a 2.5-billion-euro ($3.21 billion) 2012 loss on Wednesday because of writedowns on soured property loans and assets.
Three small Spanish banks post multi-billion euro losses”
Depositors maybe ok in Spain’s bank restructuring, but Investors will suffer HUGE losses–
Spain Brings the Pain to Bank Investors
…The restructuring terms announced by the FROB will impose losses of up to 61% at Spain’s largest nationalized banks. At Bankia SA, the largest of the institutions and the only one that is publicly traded, shareholders will be nearly wiped out and junior bondholders will lose around 30% of their original investment…
The FROB also said it would reduce the value of preferred shares in other ailing banks—Catalunya Banc’s by 61%, Banco Gallego’s by 50% and NGC Banco’s by 43%—and then convert them into ordinary shares. But as these three banks aren’t publicly traded, the Spanish government said it would give the holders of their newly created ordinary shares the option of selling them to the country’s deposit guarantee fund.” (Comment: For pennies on the euro.)