Spanish Bank Bailout: A Good Reason to Rally?
United States stock futures popped on Monday following some positive news out of the euro zone. European shares rallied and the euro climbed to a six-week high against the dollar after Spain formally requested financial assistance for its banking system.
Spain asked euro-zone finance ministers for 39.5 billion euros ($51.46 billion) to recapitalize its struggling banking sector. It’s important not to confuse this funding with a full-blown bailout, which many had been expecting Spain to request. Spain is asking for money to transfer straight to the balance sheets of four nationalized banks – Bankia, Catalunya Bank, NCG Banco, and Banco de Valencia — and the so-called “bad bank,” where Spain is quarantining toxic assets.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
Finance ministers are expected to approve the funding on Monday at a regularly-scheduled monthly meeting in Brussels.
Spain has been a major downside risk since 2008 when the crisis began in full swing…