Chinese authorities are continuing their efforts to finish mopping up the bad debts left from the big bank bailout of 1999-2000, in what some believe is an attempt to address — or, head off — another financial crisis.
So far we’ve seen IPOs, private capital raisings, quietly retiring bonds, and pushing for a big expansion of securitisation. Read more
Earlier this week we wrote about how China is using its fiscal reserves to help retire some of the bad debts shelved off to the big “asset management companies” back in 1999 — with a big hat-tip to Chen Long, of INET’s China Economics Seminar.
Some more interesting news has been revealed by our colleague Paul J Davies in Hong Kong, who has a great story — two stories, in fact — about what Cinda and fellow AMC, Huarong, are doing. Read more
Some more details about Spain’s bad bank are filtering through, mainly on how it might function in practice. And analysts are finding that the more they find out, the more concerns they have.
On Thursday Credit Suisse’s Ignacio Cerezo and Andrea Unzueta summed up their latest thoughts on AMC following a meeting with Cuatrecasas, legal advisers to the bank recap fund FROB. Overall, they see the new details that emerged as ” incrementally negative” for both Spain and its banking sector. Read more