Irish bank cure no panacea for Spain
* Fears Spain's bad bank will be too small
* Spain has yet to attract private investors for bad bank
* Spanish taxpayers at risk of further losses
By Laura Noonan
LONDON, Nov 30 (Reuters) - Spanish banks may have thought a dose of Irish medicine would fix them, but they could yet require a harsher cure.
Spain's "bad bank" opened its doors on Friday with a blueprint broadly based on Dublin's National Asset Management Agency (NAMA) and a similar remit: to purge the country's lenders of toxic property assets that left them dangerously short of capital and reliant on European aid.
Just like NAMA, SAREB - as the Spanish version is known - begins life accused both of paying too much for assets that have gone bad, and depressing the property market by acquiring them so cheaply. It has yet to attract private capital.
There is, however, a bigger fear.
"People are worried that this might not be enough," said Max Bruche, senior lecturer in finance with London's Cass Business School and former assistant professor at Madrid's Centro de Estudios Monetarios y Financieros. Continuación...