{"id":39419,"date":"2018-10-20T08:03:43","date_gmt":"2018-10-20T13:03:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39419"},"modified":"2018-10-20T08:03:43","modified_gmt":"2018-10-20T13:03:43","slug":"spains-supreme-court-flip-flops-on-mortgage-ruling-after-just-1-day-amid-bank-stocks-bloodbath-legal-shitstorm-erupts","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39419","title":{"rendered":"Spain\u2019s Supreme Court Flip-Flops on Mortgage Ruling After Just 1 Day Amid Bank Stocks Bloodbath, Legal Shitstorm Erupts"},"content":{"rendered":"
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Spain\u2019s Supreme Court Flip-Flops on Mortgage Ruling After Just 1 Day Amid Bank Stocks Bloodbath, Legal Shitstorm Erupts<\/a><\/h3>\n<\/header>\n
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Plunging bank stocks got the Court\u2019s attention, or something.<\/strong><\/p>\n

That was fast: Spain\u2019s Supreme Court on Friday flip-flopped on its own ruling announced on Thursday that had sent bank stocks plunging.<\/p>\n

It started like this: Thursday morning, Spain\u2019s Supreme Court did something nobody was expecting. It ruled<\/a> that the country\u2019s banks must pay stamp duty on mortgage loans, which would set them back billions of euros in legal fees and compensation while heaping further pressure on their lending business. News<\/a> of the ruling sent many of the banks\u2019 shares tumbling to new lows for the year while also heaping pressure on Spain\u2019s ten-year bonds.<\/p>\n

\u201cThe Supreme Court states that the person who must pay the stamp duty in the public deeds of loans with mortgage guarantees is the lender, not the one who receives the loan,\u201d the court said in a document. The court ruling on Thursday, which overturned a previous ruling in the banks\u2019 favor earlier this year, was final, the Supreme Court said on Thursday.<\/p>\n

But by lunchtime Friday, the court had decided to suspend the ruling in light of the acute \u201ceconomic and social impact\u201d it was having \u2014 meaning the banks were in trouble!<\/p>\n

The chart shows the shares of Bankia, which is 90% state-owned. Following the Thursday announcement, the already beaten down shares plunged 10% at one point. The Friday flip-flop repaired some but not all of the damage:<\/p>\n

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It\u2019s impossible to tell just how much the total compensation bill would have come to, since stamp duty varies across Spain\u2019s regions. As many as 8 million mortgage customers would have been affected by the court ruling, said<\/a> the Spanish consumer association Adicae.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Spain\u2019s Supreme Court Flip-Flops on Mortgage Ruling After Just 1 Day Amid Bank Stocks Bloodbath, Legal Shitstorm Erupts Plunging bank stocks got the Court\u2019s attention, or something. That was fast: Spain\u2019s Supreme Court on Friday flip-flopped on its own ruling announced on Thursday that had sent bank stocks plunging. It started like this: Thursday morning, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[14142,63,5660,2339,743,22451,4255],"class_list":["post-39419","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-stocks","tag-banks","tag-don-quijones","tag-mortgages","tag-spain","tag-spanish-supreme-court","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39419"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39419\/revisions"}],"predecessor-version":[{"id":39420,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39419\/revisions\/39420"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}