21 May 2012
After the partial nationalization of Bankia earlier this month, the Spanish government was hoping that the banking crisis was going to turn around.
However, on Friday, the credit rating agency Moody's downgraded 16 of Spain's banks. Among these banks are two of the largest banks in Spain--Santander and BBVA. According to Moody's, the agency doesn't believe that the Spanish government has the resources necessary to provide adequate stability for Spanish banks at this time. They stated that during the 1st quarter of 2012 the Spanish economy was back in a recession and they did not expect this status to change (at least this year).
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