Spain's Cajas make the case for asset-level disclosure

As predicted under the FDR Framework, Spain's Cajas are going to have to disclose their current asset-level data if they are to raise capital.

A Bloomberg article on the Spanish Cajas hiding bad debt should be the death knell for the Cajas raising additional capital without current asset level disclosure.

After all, what investor is going to buy equity in a financial institution without first determining if the financial institution might still be insolvent even after their investment?

Spanish banks have 50 billion euros ($70.7 billion) in unrecognised problematic real estate assets, El Confidencial reported, citing a report by the Boston Consulting Group. 

The consulting group estimates that Spanish banks need between 20 billion euros and 30 billion euros in additional capital and that Spain’s bank rescue fund, known as the FROB, could end up taking over 20 percent of the banking industry, El Confidencial added.