Spanish Banks Told To Devalue Housing Assets

February 12, 2010 (LPAC)—A week after Lyndon LaRouche exposed the fact that assets of the British-controlled Spanish-language Banco Santander were fake, according to El Mundo all Spanish banks, including Banco Santander, were told on Wednesday by the Bank of Spain to devalue the housing assets on their books by 20 percent. The Bank of Spain was not immediately available for comment.

However, El Mundo reported that Spain's banks hold property valued at an estimated 100 billion euros ($137.1 billion) taken on over the last couple of years as property companies went bankrupt and their creditors were forced to mop up their unsold assets. Clearly the country's banks have been keeping a lid on losses by valuing the homes on their books at pre-collapse levels, while real property prices have dropped by more than 14 percent from their high in 2007.

As Lyndon LaRouche has said, the overvaluation of the fake assets of banks like Santander is far greater than 20 percent. The Bank of Spain is clearly deliberately understating the extent of the problem through the delusionary hope of still being able to control the situation.

Athugasemdir

[john (IP-tala skráð) 13.2.2010 kl. 05:04]

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