I have heard that as part of the proposed break up of the bailed out banks, the Spanish mortgage parts of the business are likely to form the toxic assets and be hived off, possibly into a so-called "bad bank".
What does this mean for the operations in Spain and their current mortgage book ? Are they due to be closed, or given a clean slate to build their mortgage books again ?
Certainly Lloyds and Halifax have a branch network and probably quite a lot of normal retail customers with current accounts etc, so I think there must be a need to keep these branches.
Hardly good for morales or market sentiment if the UK banks say that all their Spanish mortgages are useless and may turn into bad debts........