We should, by now, be familiar with the Spanish banking system. Names such as Bankia and Santander have been thrown around after bailout requests were made. Well, Bankia is back in headlines.
As of this morning, S&P analysts have downgraded the long-term debt rating of Bankia to a BB-, or three levels below investment grade. This rating change was exercised due to last year's 22 Billion Euro asset transfer to a bad bank, resulting in a 21.2 Billion Euro after-tax loss.
What affect do you see for long-term lending in the EU as a whole?
There needs to be more regulation on banking systems across the globe. Even if a county's banking system is doing fine, it is important that all the countries learn from these failures by implementing rules and regulations now in order to prevent more failures from happening in the future.
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