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Lehman had spent the last five years amassing a huge commercial property loan book.
Anglo Irish Bank was nationalized in 2009 after a scandal that added to already mounting property loan losses.
Under Help to Buy, rolled out in March, the government either offers interest-free credit or guarantees part of the property loan.
A banking crisis then forced Madrid to negotiate a European bailout to keep afloat lenders weighed down by property loan defaults, sending Spain back into recession.
The Spanish economy was then hit by a banking crisis that forced Madrid to negotiate a European bailout to keep afloat Bankia and other lenders weighed down by property loan defaults.
Since not all assets are the same, the rules adjust them for risk, often using complicated modelling: a government bond is regarded as absolutely safe and so needs no capital behind it, but a risky property loan requires lots.
Similar(43)
To cool a credit boom, the authorities forced banks to hold more cash reserves and put ceilings on property loan-to-value ratios as alternatives to raising interest rates (which might attract yet more footloose money).
FINANCIAL TIMES Blackstone in Talks for Property Loan Portfolio | The Blackstone Group is negotiating with Société Générale over the sale of about $130 million of commercial property loans, The Financial Times reports, citing unidentified people involved in the deal.
The bank's bad property loans are a particular headache.
The banks grew rapidly and piled on property loans.
Rodrigo Rato stepped down as chairman of the bank, which is struggling with souring property loans.
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