Spanish Bank Borrowings From ECB Surpass Italian, As Italy Sovereign Debt Hits Record €1.95 Trillion

Tyler Durden's picture


Below we present two more charts for your rubbernecking pleasure. First, we observe the just released data showing Spanish bank borrowings from the ECB: at €287.8 billion, this was a €24 billion increase from April, €235 billion from a year earlier, and the highest ever. More importantly, as can be seen on the first chart below, for the first time since June of 2011, Spanish bank ECB borrowings increased to more than those of Italy, which at just €272.7 billion rose a mere €2 billion from April month (to a new record as well). In other words, both Italy and Spanish banks are now spurned by counterparties everywhere, but Spain's a little bit more than Italy's. Yet before Italy gloats, it bears reminding Italy that its own offsetting factor, and where it is weakest, its insane public debt, just hit a new record high of €1.95 trillion, pushing the country's debt to GDP ratio well into the 120%+ range.

Italian and Spanish ECB bank borrowings:

Italian sovereign debt:

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 06/14/2012 - 07:31 | 2524895 stocktivity
stocktivity's picture

7:30 am and US futures are up....hard to believe. This won't last.

Thu, 06/14/2012 - 07:50 | 2524923 Chris Jusset
Chris Jusset's picture

IT'S OFF TO THE RACES: Which country will become more of a debt-ridden disaster: Spain or Italy?


I'm personally rooting for Italy, but Spain seems to have taken the lead, at least momentarily.

Thu, 06/14/2012 - 08:14 | 2524965 Non Passaran
Non Passaran's picture

I am modest, I'll be happy if either of them goes bust.
Maybe Cyprus can make us happy tomorrow so that we have something to read about till Greek election results start coming out?

Thu, 06/14/2012 - 08:49 | 2525051 Harlequin001
Harlequin001's picture

Ok, so why doesn't the ECB just tell Italy to go swing, lend all its money to Spanish banks which can then make new loans to Italy with their super new capital ratios, which will then in turn be well capitalised to lend even more money back to Spain, and out of the profits, recapitalise Greece?

Instead of paying massive taxes on the exorbitant profits, the banks could put the 'taxes' into their own reserves and using fractional reserve banking rules, lend 10 times the 'taxes' back to the govt, which the govt would never need to repay because the 'loans' could be sold back to the ECB as now AAA sovereign debt, piece of piss this banking mularky.

So what's the problem?

Thu, 06/14/2012 - 11:55 | 2525923 RazvanM
RazvanM's picture

It's not going to work. Think about two thieves: they are cool to steal together from others, but deep down inside they don't trust each other to lend money. This is the reason they are asking for EURO-bonds.

Thu, 06/14/2012 - 07:48 | 2524913 EscapeKey
EscapeKey's picture

The solution here is clearly to redefine "unemployment".

They need to take a trick or two out of the book of the BLS.

Thu, 06/14/2012 - 07:57 | 2524927 Sudden Debt
Sudden Debt's picture


it's called collecting benifits right?

collecting.... sounds like "doing something"....

doing something = work





Thu, 06/14/2012 - 08:15 | 2524969 EscapeKey
EscapeKey's picture

"Full employment" causes inflation

Better redefine inflation rates as well.

Oh, I see they're well ahead of us.

Thu, 06/14/2012 - 07:18 | 2524873 valley chick
valley chick's picture

Quote:   Yet before Italy gloats, it bears reminding Italy that its own offsetting factor, and where it is weakest, its insane public debt, just hit a new record high of €1.95 trillion, pushing the country's debt to GDP ratio well into the 120%+ range.


Mamma Mia!!! 

Thu, 06/14/2012 - 07:23 | 2524882 wildsilver
wildsilver's picture

I'm getting whiplash from rubbernecking.

Thu, 06/14/2012 - 07:27 | 2524887 Zgangsta
Zgangsta's picture

Meanwhile, Greek banks are up 20% today.  Wonder how I can buy some puts on Greek banks...

Thu, 06/14/2012 - 07:29 | 2524891 LongSoupLine
LongSoupLine's picture

ECB - European Crap Buoy

Thu, 06/14/2012 - 07:30 | 2524892 Sudden Debt
Sudden Debt's picture

we call that...


Thu, 06/14/2012 - 07:39 | 2524905 LULZBank
LULZBank's picture

When do Italy and Spain go into a bitch fight over bailouts?

Thu, 06/14/2012 - 07:48 | 2524915 Sudden Debt
Sudden Debt's picture

no bitchfighting over there...

just lapdances for the germans...

untill the germans viagra works off...


Thu, 06/14/2012 - 08:24 | 2524995 asteroids
asteroids's picture

What if Italy's debt is more, much, much, more eh? Why should they be telling the truth when everyone else has been lying? Italy has been quiet. Too quiet I think.

Thu, 06/14/2012 - 09:11 | 2525162 geewhiz190
geewhiz190's picture

10 year spain 5.85 1/31/22 bid @ 7% +

Thu, 06/14/2012 - 11:35 | 2525851 Grand Supercycle
Grand Supercycle's picture

Rally warning continues...

Despite stockbears with their pre-election jitters, SPX choppy bullish daily & USDX bearish daily charts strengthen.

Significant equity / EURUSD upside & USDX retracement ahead.

Do NOT follow this link or you will be banned from the site!