One of the few things that the world is definitely not in short supply of these days is bad banks. They are everywhere, it seems, and they are spreading.
But there are bad banks, and there are Bad Banks. This article is about the latter, the officially dubbed “Bad Banks” launched by governments and central banks to conceal the rising tide of triple-F toxic junk (derivatives, securitized debt, non-performing loans…) that threatens to engulf the world’s financial system.
As Bad Banks go, few are as bad as Spain’s SAREB, the public-private company responsible for managing assets transferred from the country’s four nationalized financial institutions…
Read the full article at Wolf Street.