Markets in Europe were selling-off across the board today as Spain's banking crisis deepens.
Spanish government bond yields were climbing back towards record highs after the European Central Bank (ECB) shot down plans in Madrid to recapitalise parts of its banking system. Madrid had suggested recapitalising stricken-lender Bankia by injecting €19bn of sovereign bonds into its parent company, which could then be swapped for cash at the ECB's three-month refinancing window. This would avoid Spain having to tap the bond markets for cash. However, the ECB told Madrid a proper capital injection is needed for Bankia, with its plans in danger of breaching an EU ban on central bank f...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes