ECB secretly rescues Spanish banking system
Spanish banks are issuing mortgage securities and asset-backed bonds on a massive scale and use them as collateral to raise money at favourable rates from the official credit window at the European Central Bank.
The data appear to confirm suspicions that the EU authorities have carried out a covert rescue of the Spanish mortgage banking system.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/01/28/bcnspain128.xml
