Goldman Sachs and Bank of America were among the main advisers

canada goose store Spain sounding out investment banks on crisis options

canada goose By Victoria Howley and Sophie Sassard

LONDON, May 2 (Reuters) Spain is sounding out investment banks including Credit Suisse, Goldman Sachs and UBS as it seeks a credible fix for its banks roiled by a collapse in real estate prices and now threatening the creditworthiness of Spain itself, sources familiar with the matter said.

Spain has repeatedly said it will not ask for European Union or IMF money to solve the problem of its banks, hit by billions of euros in canada goose black friday sale losses after the bursting of a decade long property bubble in 2008. Instead, the central bank is consulting about setting up a holding company to value and sell off the real estate assets.

Bankers say institutions in the running to advise Spain include those with experience of setting up Ireland National Asset Management Agency (NAMA) a model which Spain could use or in arranging Greece debt restructuring earlier this year.

Lazard, Blackstone and canada goose clearance sale BNP Paribas advised on restructuring Greece debt. Goldman Sachs and Bank of America were among the main advisers to Ireland.

Credit Suisse, UBS, Citigroup, JP Morgan, Rothschild, Nomura and Deutsche Bank have also participated in government work through the financial crisis, according to Thomson Reuters data.

Canada Goose online are debating ideas and being encouraged by the International Monetary canada goose uk outlet Fund to do so, said Pierre Yves Bonnet, global head of financial institutions group at Societe Generale.

cheap Canada Goose it is a very political decision as it means that they underestimated the necessary writeoffs in the first place.

Canada Goose Outlet Spain conservative government has told the country banks to raise almost 54 billion euros in capital this year.

canada goose coats on sale Since June 2008, and without taking into account new measures set in motion by the Spanish government regarding construction and property development related assets, provisions have already been increased by 112 canada goose coats billion euros, according to recent canadian goose jacket data by the Bank of Spain.

canada goose black friday sale The state has injected about 18 billion euros into the canada goose factory sale system, has taken control of five canada goose clearance banks and has forced lenders to recognise steep losses. It is now looking at what it calls a structure to take toxic assets off their books.

canada goose clearance sale Some analysts expect property prices to fall another 20 or 30 percent. Many therefore believe existing provisions against bad real estate loans will not be enough, and some say Spain will eventually need a bailout like Greece, Portugal and Ireland.

canadian goose jacket A first step would be for real estate advisers to determine canada goose how much the government should provision for a bad bank.

Selecting a banking adviser to help create and buy canada goose jacket cheap launch a bad bank is a politically charged step that would come later in the process, bankers said.

canada goose clearance Peter Hahn, who teaches finance at London Cass Business School and is a former managing director canada goose uk shop at Citigroup, said investment banks could provide valuable buy canada goose jacket input on a clearing price.

Canada Goose sale real estate consultant valuation is not worth anything unless Canada Goose Jackets you can find a buyer for those assets. That where the investment banks come in, he said.

INDIVIDUAL MANDATES THE PREFERRED ROUTE Privately some bankers said they would prefer not to get a role advising the government, because a one off fee for the work would be potentially less lucrative than a couple of mandates to sell or buy Spain regional savings banks, known as

Potential advisers Canada Goose Online are also keen to avoid getting involved in conflicts of interest Canada Goose sale that could cost them business.

buy canada goose jacket prefer transaction specific deals rather than a sector wide mandate uk canada goose because that can conflict you out of every canada goose store buyside transaction, said a London based banker, who covers cheap canada goose uk the financial institutions sector.

canada goose deals The Bank of Spain has already sold four banks rescued by the state and has three more left to sell. It started marketing two of these the small Banco de Valencia and Catalunya Caixa, a mid sized Catalonian savings bank, on Thursday.

One banker said the mandates to Canada Goose online sell the cajas were canada goose coats on sale rotated among a panel of investment banks that had been pre qualified for the appointments.

Canada Goose Jackets Nomura was selected to sell Banco de Valencia with guarantees on its 6 billion euro portfolio of troubled real estate assets covering 80 percent of future losses over 10 years, bank sources who had seen the prospectus said previously.

Potential losses should Canada Goose Coats On Sale be covered through the country Deposit Guarantee Fund (DGF), financed by annual contributions from banks, which originally covered retail deposits but now also guarantees other assets.

Citigroup won a similar role at Catalunya Caixa, which was taken over in September when canada goose uk black friday it was valued Canada Goose Outlet at almost nothing. This sale is also expected to be financed by the DGF with a similar asset uk canada goose outlet protection scheme on a soured Canada Goose Parka real estate portfolio of almost 6 billion euros.

PROPERTY ADVISERS Madrid has played down the idea of creating a bad bank similar to NAMA, set up after Ireland suffered its property crash, but banking sources said consultants from Oliver Wyman and BlackRock were advising it on how to value the toxic assets.

Spanish government officials have held informal talks with at least four other international property advisers to learn more about NAMA inner workings, separate sources said.

Canada Goose Parka is being done discreetly over dinner or through approaches at trade shows, one source said. have had a lot more approaches of late.

Real canada goose chilliwack bomber sale estate advisers including CBRE, Savills, cheap Canada Goose DTZ and Knight Frank have given advice on what many property industry sources see as a successful Irish model.

canada goose coats Supporters of that approach include Joe Valente, head of research and strategy for the European real estate group at JP Morgan.

Be Sociable, Share!
Henrik Hofmann

About Henrik Hofmann

Dr. Henrik Hofmann …. betreibt eine Kleintierpraxis in Butzbach/Hessen. Er ist spezialisiert auf Akupunktur und Schmerztherapie, seine Frau Daniela – ebenfalls Tierärztin – beschäftigt sich intensiv mit Zahnmedizin bei Kleintieren. Dr. Hofmanns spezielle Leidenschaften sind Schreiben und Fotografie. Einerseits auf diesem Blog, daneben aber auch für eine Reihe von Tierhalterzeitschriften und Tageszeitungen. Von ihm erschienene Bücher sind oben unter der Rubrik „Bücher“ beschrieben.