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Spain's Big Problem Europe's bank recapitalization exercise misses the point in Spain.
The point of Europe's recapitalization exercise is to restore confidence in banks and allow them to once again start financing themselves in the wholesale market.
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The E.U. statement noted that the similar tests carried out in the United States had been carried out "ahead and in view of a wave of recapitalizations," while the European exercise came after members had "already undertaken measures in favor of banks and banks themselves had the opportunity to strengthen their capital positions".
In April 2000, for example, it advised Ford on a complicated recapitalization plan.
"This is a recapitalization.
It is instead a recapitalization.
That initial recapitalization was necessary.
It also must complete a bank recapitalization.
But rapid recapitalization is likely to be required.
Failing that, "the government is responsible for recapitalization," he added.
They have been primed to expect a larger recapitalization.
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