El blog de Maria

According to a new published in "La Vanguardia" yesterday:

"The main Spanish banks are resisting a difficult environment. The defaults have shown signs of stabilization, but will remain at a relatively high level in 2010, and is expected to push the benefits, "according to a report by rating credit risk agency Fitch.

'The collapse of the housing sector and the recession in Spain have affected financial institutions', but Fitch is not' worried 'about the situation of the big banks, through “their current income, asset management, strong capitalization and continued access to financial markets” . The director of financial institutions at Fitch, M. Maria Jose Lockerbie, remember that institutions face the deterioration of the quality of its assets since June 2008, although 'in late 2009 some signs of stabilization appeared. " The credit rating agency - that with Standard & Poor's and Moody's had an essential role in the dissemination of financial assets contaminated by subprime mortgages between 2003 and 2007, underlines that the main institutions recorded a strong operating profit during years of great recession.

The report also notes that the benefits of the two large Banks, Santander and BBVA have outpaced those of their international competitors due to its large network of branches and their geographical diversification. For its part, Caja Madrid and to a lesser extent, La Caixa, more rooted in the real economy have been harderly hit by the recession and housing crisis, the report said. In addition, large banks have strengthened their capital without having received public funds, what has not happened in Germany, France, Belgium, the Netherlands, the UK and U.S.

I would add that the exposure of Banks to the housing crisis have been quite lowered due to Bank´s "negligent" ( to say the less) practise on not securing on the existence of the due Guarantees according to provision 1.2 of law 57/68. They, Banks and saving Banks were your deposits were placed, were entrusted by this Law to be the ultimate guardians of people´s hard earned money, and in many cases.... they  blatantly ommitted to do anything regarding this.

It is very important to take this into account and to ask for the  legally corresponding liabilities..... specially if they are so strong now against the rest of the "dancers of the building party" who are sooo weak and sick now:  specially consumers.

Again.. have a great Easter break.

Maria L. de Castro

www.costaluzlawyers.es

Maro, Málaga by Cayetano at Flickr.com