Something tells me this latest bailout request won't be the last. There are too many serious problems in Spain to fix overnight. There is no real estate recovery anywhere on the horizon and the unemployment figures won't help either. Then add in a heavy dose of austerity which we now know will brutalize an economy and you have a recipe for an even great financial disaster in Spain.
More on the banking bailout crisis from The Guardian:
The first steps in a major restructuring of Spain's fragile banking sector were put in place on Friday night as the board of Bankia – Spain's fourth biggest bank – asked the country's government for a rescue cash injection of €19bn (£15bn).
With Spanish banks now seen as a serious threat to the euro, taxpayers are likely to end up with 90% of the deeply troubled lender.
The new bailout – taxpayers already own 45% of Bankia – is expected to be just the first part of a growing bill for cleaning up a banking sector that has been refinancing loans on toxic real estate and comes amid signs that regions within Spain are unable to take the strain. The regional government of Catalonia called for financial help from the central government.