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  • The Spanish government is considering the creation of a bad bank to hold financial institutions’ toxic assets but says the transfer would be voluntary for now.
  • The Royal Bank of Scotland says it is will repay the final portion of the £163 billion ($263.3 billion) in loans it received through the U.K. government’s Credit Guarantee Scheme.
  • The ceos of top Wall Street banks have complained to Federal Reserve Governor Daniel Tarullo that recent stress tests conducted by the central bank used a scenario that overstated their losses, and that proposed counterparty credit limits likewise overstated banks’ exposure to each other.
  • Société Générale reports that profits in the first quarter dropped 20% to EUR732 million ($962.5 million) from a year earlier, largely because of a revaluation of its debt and loses from the sale of a corporate loan portfolio.
  • Austrian bank Hypo Noe sold a EUR500 million ($657.5 million) no-grow 10-year covered bond, which attracted an orderbook three times that size from 100 investors.
  • Prytania Investment Advisors has launched the Metreta Fund, a liquid structured finance fund that it says will provide low-risk but liquid returns from investments in senior tranches of asset-backed securities.
  • The Federal Reserve Bank of Dallas supports tough standards for banks that request a taxpayer-funded bailout.
  • Barclays Sells Its Largest U.S. Covered Bond Barclays has sold $2 billion of its latest covered-bond, its largest ever in the U.S. and twice the size of its previous bond, offered in September 2010.
  • Morningstar has indicated it will take a closer look at how mortgage servicers operate, including how they handle cash flows to investors and foreclosure time limes.