$125b spanish banking bailout - crisis worsens

More activity in Europe over the course of yesterday. There could well be further developments before our market reopens on Tuesday.

http://www.bloomberg.com/news/2012-06-09/spain-seeks-125-billion-bailout-as-bank-crisis-worsens.html

Spain Seeks $125 Billion Bailout As Bank Crisis Worsens
Emma Ross-Thomas, Charles Penty and Ben Sills
June 10 2012

Today’s move means Spain has a firewall in case the Greek election on June 17 unleashes a fresh round of market turmoil...

European officials have failed to get their arms around a debt crisis that started in Greece at the end of 2009 and has now claimed the euro region’s fourth-largest economy. The bailout adds to the 386 billion euros ($480 billion) in pledges to Greece, Ireland and Portugal that European governments and the IMF have made since 2010...

Fitch Ratings downgraded Spain to BBB, within two steps of non-investment grade, on June 7 and said the cost to the state of shoring up banks may amount to as much as 100 billion euros in the worst case, compared with its previous estimate of 30 billion euros.