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Spain Banks Rule Out State Aid to Raise EU17 Billion in Capital
Spanish banks won’t tap state funds to raise 17 billion euros ($24 billion) of capital, with Banco Bilbao Vizcaya Argentaria SA and Banco Santander SA using profits and changes to the way risk-weighted assets are calculated. While Spanish banks have to bolster capital by 26 billion euros, they can put 9 billion euros of convertible bonds they’ve already sold toward that amount, the European Banking Authority said today. The extra funds are needed to meet a requirement for banks to hold 9 percent in core capital after sovereign debt writedowns, including a 3 percent cut to Spanish bonds. BBVA, which has to bolster ... (full story)