#badbank

The Spanish government set up SAREB in 2012 as a “bad bank” which was given 15 years in which to dispose of approximately €65 billion of property assets. SAREB is an abbreviation for “management company for assets arising from the banking sector reorganization”. It is a private organization created to try and clean up the Spanish financial sector and specifically those which have over invested in the property market. Banks in financial difficulty could transfer their real estate assets to be managed by SAREB in order to mitigate the risk associated with those assets. The Spanish government established SAREB as part of an agreement with other European nations in order to get financial aid for the Spanish banking sector. Four national banks handed over approximately 200,000 real estate assets of which 80% where mortgage loans and 20% were properties – Banco de Valencia, Catalunya Banc, NCG-Banco Gallego and Bankia as well as Liderbank, Caja3, Banco CEISS and BMN.

What is Sareb?

Sareb is Spain’s “Bad Bank”; it is a private entity which was created in 2012 to help clean up problems in the Spanish banking sector created by excessive lending to the real estate sector. With the help of Sareb the Spanish banks receive financial aid from European partners. Banks in financial difficulty can transfer their real estate assets (80% loans and 20% properties) to the Sareb management company reducing the bank’s risk of associating with assets and then the bank can continue with its business. Sareb has received nearly 200,000 Spanish assets from banks since its establishment; the assets are worth approximately 50.781 billion Euros.  Banks which have transferred assets to Sareb include Catalunya Banc, Bankia, Banco de Valencia, Liderbank, Banco CEISS, BMN, NCG-Banco Gallego and Caja3. Sareb follows a strict business plan which maps out the organization’s activities for Sareb’s maximum lifespan of 15 years. During that time Sareb will sell off and refinance the assets in order to make a profit for its share holders. The shareholders include those who put up capital from the private sector (55%) and 45% of the shares are owned by the Fund for Orderly Bank Restructuring (FROB). The shareholders include 14 Spanish banks; 2 foreign banks; 10 insurance companies and FROB. Sareb plans to turn a profit through retailing the properties, diversifying the distribution of properties, selling to investors, compiling portfolios to fit a specific investor’s profile and the selling to professional investors.

The Bad Bank Sells Madrid and Barcelona Properties

This month Sareb launched a campaign to sell off more than 1,300 properties in Madrid and Barcelona. It is natural that these properties will be sold at below market price and so they provide a good investment opportunity for buyers. 

#italia #banche #badbank #MPS

From The Economist Espresso: The price is wrong: Italy’s banks

http://econ.st/1Qo9v5v

New Post has been published on http://www.newsfrombanks.com/italy-lenders-seen-cleansing-books-amid-bad-bank-plans.html

Italy Lenders Seen Cleansing Books Amid Bad-Bank Plans

(Bloomberg) — Italian banks, under pressure to bring their balance sheets in line with the European Central Bank’s health check, will probably set aside billions more for loan losses in the fourth quarter as the government considers a national plan for offloading their troubled assets.

Banca Monte dei Paschi di Siena SpA, the weakest performer in the 130-bank review, is likely to almost triple its loan-loss provisions to 3.2 billion euros, according to the average of six analyst estimates compiled by Bloomberg for Italy’s third-biggest bank. In total, the top five banks may set aside about 8 billion euros, company and Bloomberg estimates show.

The nation’s lenders are saddled with a record 181 billion euros of nonperforming loans that are hindering their ability to expand lending and holding back the country’s recovery from its third recession in six years. More than two years after the balance-sheet clean-up started, the government is considering creating a bad bank to accelerate disposals of problematic assets.

Government support would help generate economic growth, Bank of Italy Governor Ignazio Visco said Saturday. “Appropriate tax relief or state guarantees on assets backed by bad debts would smooth the way for the creation of a private market in non-performing loans,” he said in a speech in Milan.

“A bad bank vehicle combined with structural reforms would be a key tool to improve Italian bank profitability,” analysts at Morgan Stanley including Francesca Tondi wrote in a report Friday.

Fabrizio Bernardi, an analyst at Fidentiis Equities, said banks with a lower-than-average asset quality profile would benefit the most from a bad bank.

Clean Start

All five banks are scheduled to publish fourth-quarter earnings this week. Leading the pack, UniCredit SpA and Intesa Sanpaolo SpA will probably set aside about 3 billion euros between them. Both banks posted full-year losses in 2013 after writing down billions of non-performing loans. Banco Popolare SC, the country’s fifth-biggest lender, may post 1.27 billion euros in provisions, according to the surveys.

Fourth-quarter earnings are likely to show “subdued trends and low profitability, but our focus is on outlook,” said Azzurra Guelfi, an analyst at Citigroup Inc. She said prospects for Italian banks are improving, citing their efforts to deal with bad loans and the ECB’s forthcoming purchases of European sovereign debt, set to start in March. “In the long term, we favor Italian banks,” Guelfi said.

Industry Shakeup

Italy’s banking industry is facing the biggest shakeup in more than two decades after the government in January approved a decree to convert cooperative banks into joint-stock companies. The overhaul will make them more appealing to investors and give them more access to capital markets, Visco said.

Investors who shunned Italian banks during Europe’s debt crisis showed renewed interest last year. Shares of Italian lenders have rallied over the past 12 months, outperforming the 45-member Bloomberg Europe 500 Banks and Financial Services Index. The FTSE Italia All-Share Banks Index returned 8 percent, while the BEBANKS index declined 2 percent.

Lenders across the euro area are shoring up balance sheets under pressure from the ECB, the region’s new banking supervisor. The ECB wants banks to either provision for overstated assets or raise more capital after a yearlong review found many had inflated their assets.

Fifteen Italian lenders evaluated by the ECB were judged to have overvalued their loans by about 12 billion euros at the end of 2013. Most had closed the gap by the time the ECB issued its results in November, either by raising capital, booking extra loan losses or selling non-performing portfolios.

Monte Paschi

Monte Paschi faces a second challenge as a result of the ECB’s asset quality review, or AQR. In addition to overstating its assets by about 4.2 billion euros, it failed the ECB’s stress tests, another component of the health check. Monte Paschi came up 2.1 billion euros short of the funds it would need to survive a crisis.

The ECB has instructed Monte Paschi to increase its minimum capital ratio as part of a plan to raise 2.5 billion euros from investors. The bank, founded in the 15th century and considered the world’s oldest lender, will probably post more than 3 billion euros in extra provisioning for the fourth quarter, people with knowledge of matter have said.

“As a consequence of moral suasion from the ECB and the Bank of Italy, we expect Italian banks to book all or the vast majority of the residual AQR charge” in the fourth quarter, starting 2015 “with a blank sheet,” Andrea Vercellone, a London-based analyst at Exane BNP Paribas wrote in a Jan. 30 note.

(Figures in mln euros) Bank Total AQR 3Q LLP 4Q LLP No of Adjustments* Stated Expected Estimates (avg) UniCredit 1,026 754 1,510 ** 22 Intesa 973 1,248 1,399 11 Paschi 4,246 1,257 3,239 6 Banco Pop. 1,603 445 1,269 10 UBI 390 197 320 ** 13 * ECB’s AQR results based on 2013 figures ** Bank’s survey

To contact the reporter on this story: Sonia Sirletti in Milan at [email protected]

.ausgestrahlt-Newsletter 13. Mai 2014

es schreibt: Jochen Stay

Lesen, Handeln und Weiterschicken!

Liebe Freundinnen und Freunde, wir sind von der Atomwirtschaft ja so einiges gewohnt. Aber sie können es immer noch dreister: Jetzt wollen sie also ihre Kraftwerke samt den Entsorgungs-Rückstellungen von 36 Milliarden Euro dem Staat "schenken", dann aber nicht mehr für künftige Kosten bei Störfällen, beim Abriss der Reaktoren, oder der Atommüll-Lagerung haften.

Klar, die können rechnen und sie wissen, dass ihr eigenes Gerede vom billigen Atomstrom nie gestimmt hat. Jahrzehntelang haben sie sich an den AKW eine goldene Nase verdient und jetzt, da es richtig teuer wird, wollen sie die gigantischen Risiken an die Gesellschaft übertragen.

Mach mit bei unserer Unterschriften-Aktion "Wir zahlen nicht für Euren Müll!": www.ausgestrahlt.de/badbank