According to Reuters News, the swapfest for troubled Spanish property giant Colonial has begun--banks are busy exchanging debt for shares. The estimated $3 billion of debt is quickly turning into shares. La Caixa, Banco Popular, Bancaja and Bankinter have all reported such exchanges and today Banco Popular--which lent $596 million to Colonial's former chairman Luis Portillo--took 9.15 percent of Colonial's shares.







