Small bailout points to bigger problem in Spanish banking

04/6/2009 | Economist (free content), The

Spain's $12 billion bailout of a small savings bank, Caja Castilla La Mancha, could be the first sign of a deeper problem for the nation's private savings banks, known as cajas. When Spain's big publicly held banks started curtailing their lending to the housing sector, cajas went to the wholesale market for more capital and kept lending.

View Full Article in:

Economist (free content), The

Published in Brief: