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Moody’s says Spanish banks are much worse off than independent audit revealed

By Quartz Staff

A link from Businessweek

Spanish banks could need nearly double the amount recommended by an independent banking review last week, according to a report by Moody’s Investor Services. Moody’s analysts said that Spain needed between €70 billion and €105 billion to keep banks afloat. Last week’s independent audit put the number just under €60 billion. “The recapitalization amounts published by Spain are below what we estimate are needed for Spanish banks to maintain stability in our adverse and highly adverse scenarios,” said Moody’s analysts Maria Jose Mori and Alberto Postigo.