More bankster monkey humping
After the euro debt crisis, Spain’s alpha-lender sought greener pastures in the Emerging Markets. That bet is coming home to roost.
Few, if any, global banks have bet as large, or as recklessly, on fast-growth emerging markets as Spanish lender BBVA. In the first half of 2018 its subsidiaries in Turkey, Mexico, Argentina, and other Latin American economies provided roughly half of its revenues and over 60% of its global operating profits. Now, with the current emerging market downturn deepening and contagion spreading from one market to another, BBVA is beginning to pay the price for its elevated exposure.
The bank’s shares, at €5.20 a share, have plunged 18% since the beginning of August, when the latest phase of Turkey’s crisis began, and are down 26% year-to-date. The bank’s debt is also getting more costly to service. The main reason is BBVA’s exposure to roughly €76 billion of Turkish assets, through…
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