The Bombay Stock Exchange has not had to wait long to take the first disappointment to investors. It was enough for Luis de Guindos announced yesterday in an interview with British newspaper “Financial Times” that the Spanish banks need more than 50,000 million new provisions to consolidate their real estate assets to cause the first crash of the new season.
The FTSE was down 2.94% at the end, although at times the losses came to exceed 3%. In Europe, only Milan had worse performance than the Spanish market. The FTSE MIB, the main indicator of the Italian stock exchange, was left in the day 3.65%, dragged down by UniCredit, the largest Italian bank, whose shares slid 17.27% of its value, in a dark day for all transalpine banking. The rest of the old continent bags closed in the red, but with very moderate falls.
Attack on Italian banks
UniCredit was seriously injured by it intends to apply the discount (43%) in a capital of 8,000 million euros to be launched to strengthen their own resources. The bank, whose stock was suspended by stock exchange authorities of the country to the very strong sales of titles, had lost 14.50% on Wednesday.
The lack of investor confidence in the Spanish and Italian banks had its translation in other European banks. The three major French banks (Société Générale, BNP, Credit Agricole) yielded more than 5%. In Germany, Deutsche Bank shares fell 5.6% and Commerzbank, the 4.45. The British financial system, largely nationalized since the beginning of the crisis, was the least noted the doubts return to continental plan on the bench. Barclays Bank gave 2.47% and Royal Bank of Scotland, 2.34%.
Fear of commissions
While nothing is yet known of the details of the new provisions, or what toxic assets are calculated real estate, stock Bankia has estimated that the Spanish banks would need another 6,000 million capital to raise the coverage of 30% to 50 %, according to Efe, with Civic Banking at the top (1,273 million), followed by Santander (1,197), Popular (973) and BBVA (897). Banco Sabadell and Caixabank have surplus capital.
Users Association of Banks, Banks and Insurance Adicae fears that the need for new banking writedowns end up being paid to further increases in the fees that customers pay the banks for holding and disposing of their money. In 2011, fees debit card rose 17.05, and 9.65% for credit cards.
Concerns about the banking sector moved to the risk premiums in all countries, but was particularly apparent in the case of Spain and Italy. Our country risk rose from 351 to 377 basis points and the Italian, from 499 to 525, with 10-year bonds at 5.637% and 7.110% respectively.