Spain bank rescue glee morphs into markets rout

June 12, 2012 • Business

Spain’s Economy Minister Luis de Guindos, left and Spain’s Prime Minister Mariano Rajoy talk during a swearing in ceremony for the new governor of the Bank of Spain Luis Maria Linde, unseen, at the Zarzuela Palace in Madrid Monday June 11, 2012. The current Bank of Spain governor Miguel Fernandez Ordonez is stepping down a month earlier than scheduled. (AP Photo/Angel Diaz,Pool)

MADRID (AP) — Euphoria over a lifeline of up to €100 billion ($125 billion) to rescue Spain’s hurting banks morphed into a financial markets rout in a matter of hours Monday, as investors digested the still-undefined plan and became concerned the country may be unable to repay the new loans.

The rate on Spanish 10-year bonds — a measure of market trust in a country’s ability to repay debt — rose to an alarmingly high Login to read more

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