Banks toxic debt
 

Apparently, the toxic debts of all the major Spanish banks are going to be placed in a new bank and dealt with therein. This "Toxic debt" must be in the form of "Toxic assets" i presume. i.e.the market value of the asset against which the loan was secured is substantially lower than the outstanding balance of the original loan. So much lower in fact that it is deemed toxic as opposed to just negative equity.
Anyone have knowledge of this process and how to investigate and proceed to purchase some of these "Toxic assets"?
Any information appreciated. Thanks. Luth

Re: Banks toxic debt
 

I think you would be better asking this on a financial forum. I know we are a bunch of know-it-alls on here, but there are limits:rofl:

Re: Banks toxic debt
 

Depends who is running the toxic bank, the normal thing in that situation is to auction off the assets (Ie houses) so that a fair market value can be attained but as Euro countries move back towards socialism it is unlikely they will want to flirt with the nasty reality of market pricing,

Re: Banks toxic debt
 

Oh, I don't know, I reckon the socialists just have a different way of evaluating "fair market value". They just legislate the value into law. Then "fair market value" is fixed at some arbitrary rate, and there's no need to concern yourself about it. Like everything else on planet socialism: Simples.

Re: Banks toxic debt
 

Spain has at least 3 years of the right wing PP left so I wouldnt worry about that - and actually the socialists have gone down in the opinion polls recently as everyone is still blaming them for the crisis

For the OP, wait until they have at least given the new toxic bank a name! Then contact them. It'll be 3-6 months at least until they'll be marketing I'd think

Re: Banks toxic debt
 

why would someone want to buy up toxic assets ?

wasnt Bernie Madoff looking into that as a sideline before he got crunched ??

Re: Banks toxic debt
 

Sorry, the nonsense coming out of the current government, assumed it was the socialists!

Re: Banks toxic debt
 

Oi......Domino, a good afternoon to you. Now what are you saying? I enjoy your posts and find them informative. Only being nice!
I raised an honest question with honest intentions.
Anyone suggest a financial forum where this question would maybe fit better as Jackytoo has commented?
Thanks for the replies to date.

Re: Banks toxic debt
 

Hi, thanks
but i was also being honest - who would buy up toxic debt ?

currently even Spains banks appear to have their heads in a cloud, was in La Caixa yesterday and picked up a glossy booklet with loads of houses/flats for sale in Andalucia - all IMHO overpriced.

Looks like a Marie Antoinette moment

Re: Banks toxic debt
 

It wouldn't matter who is at the helm, they have an impossible job. It's a big mess, and the people are really more interested in keeping their benefits (while working black and paying zero taxes) than solving the problem.

But I think it's safe to say that the mess can be blamed on the socialists, who until recently were in power for (how long now?). And aside from that, socialist governments historically haven't a good record when it comes to economics and overall public prosperity.