http://www.zerohedge.com/news/2013-07-14/european-political-crisis-spreads-leaked-texts-prove-rajoy-link-illegal-party-fundin
Submitted by Tyler Durden on 07/14/2013 13:33 -0400
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10178962/Ailing-Co-op-Bank-could-seek-billions-from-taxpayers.html
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European Political Crisis Spreads - Leaked Texts Prove Rajoy Link To Illegal Party Funding
Amid the turmoil in Portugal, the Barcenas-Affair in Spain had dropped to the back-pages of the European press... until now. The illegal party-funding that ex-Treasurer Barcenas is now whistle-blowing on has been linked directly to Spanish prime-minister - despite Rajoy's ongoing denial of everything - via text messages uncovered by Spain's El Mundo newspaper. The opposition leadership is demanding Rajoy's "immediate resignation," noting he "is incapacitated," amid the damage that the texts - which prove an ongoing and direct link to the man at the hub of the funding debacle for at least the last two years (when Rajoy has expressly denied any relationship). "You cannot govern well," another congressman noted, when there is "very clear data" linking Barcenas with the PP (Rajoy's party) and the alleged illegal funding. Only a few screen shots have been released of the dozens of texts that the paper has apparently received...
Mariano Rajoy maintained a direct and permanent contact (at least May 2011 to March 2013) with the former treasurer and asked him to deny the B accounts and bonuses . This is demonstrated by SMS were exchanged and numerous conversations, telephone or face to face....These SMS can see how in 2012 Rajoy tried to calm the caller when things got ugly: "Luis, nothing is easy, but we do what we can. Courage."...And, as in 2013, the day the scandal was uncovered the bonuses and 48 hours after they met Swiss accounts, the president urged Barcenas to "be strong" and expressed his understanding.The SMS published today-all that have been provided, are a small part of the total. Barcenas has special interest in its diffusion after his former party on Thursday would define him by the mouth of Alfonso Alonso as "an offender who has made ??lies their lifestyle" .Luis Barcenas was silent for years , since the outbreak of the Gürtel case until well after they met their Swiss accounts and the scandal of bonuses, for the support they lent him personally Mariano Rajoy, first as president of the PP and then their dual role of chief executive and party which holds.This is evidence, for example, dozens of mobile phone text messages were exchanged the former treasurer and his wife, Rosalie Church, with the number one party. In these SMS is shown that Rajoy has maintained permanent contact and direct with Barcenas for at least two years.Telephone messages, phone calls and personal interviews in which the president asked patience again and again, who denied everything, in short, do not throw it on the blanket.
and Via Trust.org,
A March 14 text showed Barcenas was ready to break away from the party. "Mariano, the behaviour of the two party lawyers this afternoon was shameful," he wrote, according to El Mundo."You must know what you're all playing at but I am now freed from any commitment to you and the party," the message said.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10178962/Ailing-Co-op-Bank-could-seek-billions-from-taxpayers.html
10:00PM BST 14 Jul 2013
Comment
To fill a £1.5bn capital hole in its banking subsidiary, the Co-operative Group has drawn up plans inject £1bn itself and force bondholders to bear a £500m loss on their £1.3bn investment. However, the rescue needs the approval of 77pc of bondholders and, if they reject the deal, the group has threatened to put the bank into “resolution” with the Bank of England.
Under resolution, bondholders would potentially lose everything, but sources close to the situation confirmed that taxpayers would also be “at risk”. They said that, although the Government would not have to inject capital as it did with Royal Bank of Scotland and Lloyds Banking Group, it might have to provide a bridging loan.
In the previous “resolutions” of Bradford & Bingley and Dunfermline Building Society, the taxpayer provided bridging finance under arrangements to move customer deposits to rival banks. About £11bn was loaned to B&B in 2008, £8bn of which was outstanding in March last year, according to the National Audit Office. Another £1.5bn was raised for Dunfermline in 2009.
Resolving the Co-op Bank threatens to be more expensive than either earlier case because it has £36bn of customer deposits, roughly £27bn of which are retail and £9bn are corporate. B&B had just £22bn, and Dunfermline was tiny by comparison. Some of the Co-op Bank's £9bn corporate deposits have been withdrawn since its six-notch rating downgrade to "junk" in May.
Although losses on a taxpayer loan would be unlikely, the Chancellor would have to agree to raise debt in the markets at a time when he is trying to reduce government borrowing. In the case of B&B, the loan was not expected to be repaid for 10-15 years.
