'Bad bank' debts

Spain's "bad bank" - a vital cog in cleaning up the country's financial system - has raised €14.1 billion ($18 billion) in funding as it prepares to take on billions more in bad loans. The sale of the subordinated bonds will help the bank, SAREB, absorb a second batch of bad loans this week. Four nationalised banks, including Bankia, transferred €36 billion in bad loans to SAREB last month as part of an effort to clean up balance sheets after Spain's property bubble burst in 2008. Four other troubled lenders are to transfer billions more by Thursday. SAREB is expected eventually to take on €55 billion in problem loans and assets.