Zapatero's Bid to Lure Investors to Cajas May Prove `Impossible for Now' - Bloomberg: "Spanish Prime Minister Jose Luis Rodriguez Zapatero wants to lure private investors to the country’s savings banks to share the burden of shoring up their capital. It won’t be easy, analysts and investors said.
“Mr. Zapatero can do lots of things like raise VAT or cut social benefits, but something he can’t do is force a private investor to put his money in a caja if he doesn’t want to,” said Pablo Garcia, head of equities at Oddo Sociedad de Valores in Madrid. “I’m afraid it’s just impossible for now.”
Momentum may be building for the state to provide more capital to the savings banks to restore confidence in an industry and economy stricken by lending to property developers, said Inigo Lecubarri, who helps manage about $200 million at Abaco Financials Fund in London. The savings banks, or cajas, are regional institutions run as foundations that helped fund the property boom and account for about half of Spain’s loans"
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