Sareb is what has come to be called as the bad bank, which aside from much loan promoter also promotes the construction of real estate and is dedicated to the sale of the entire real estate portfolio that has inherited. When it was decided to bail out the banks after the real estate crisis, the FROB or Orderly Banking Restructuring Fund was set up. The FROB is a financial instrument created to measure the restructuring of the Spanish banking system and all the savings banks that had been expanded by the Crisis.
Among the actions of the FROB was the Sareb, known as the bad bank but never got to give banking license. The government had to create a vehicle like the Sareb bound by the Memorandum of Understanding (MOU) that had signed with the rest of the EU countries to lend the money to the bank bailout and to continue to function normally. Continue reading “The floors of the banks bailed out with your money”