Republican Mark Kirk stated the Spanish economy is “five times worse than that of Greece” at the hearing of Mary Shapiro, president of the regulator and supervisor of the markets in the U.S. (SEC) in the House of Representatives.
Kirk demanded the head of the supervisory agency to require American companies to disclose the extent of their exposure to the economies of Greece, Italiy, Portugal and Spain (referring to them as the “GIPS”).
Kirk also asked about the impact that a possible credit rating downgrade of the GIPS on US companies would have.
With investors recently putting in doubt the capacity of Greece to face its debt, the interest rates on its sovereign debt faced an increase in interest rates. Will Spain suffer the same fate as Greece?