Spainish Bank : bailed in

gerhard dengler

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It's being reported that the 6th biggest bank in Spain - Banco Popular - has been acquired by Spanish bank Santander for €1.00, as instructed by the European Central Bank.

The instruction for Santander to acquire Banco Popular by the ECB means that shareholders and some bondholders in Banco Popular will carry the cost of the banks failure, which is an interesting departure in itself.

Santander rescues rival Banco Popular from collapse - BBC News
 


Absurdo

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OMG. Spain is soooooooo doomed. I mean we just avoided that awful outcome thanks to the ECB and friends. All we have to do is just get with austerity. Simples.
 

Disillusioned democrat

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So - the ECB has learned from the mistake they made us make - well, that's some consolation I suppose.
 

mr_anderson

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It's being reported that the 6th biggest bank in Spain - Banco Popular - has been acquired by Spanish bank Santander for €1.00, as instructed by the European Central Bank.

The instruction for Santander to acquire Banco Popular by the ECB means that shareholders and some bondholders in Banco Popular will carry the cost of the banks failure, which is an interesting departure in itself.

Santander rescues rival Banco Popular from collapse - BBC News


This is looking like one of those sweetheart deals whereby the ECB asks Santander to buy Banco Popular in exchange for unlimited support.
10 years after the Spanish bubble bursts and we're only at this phase.
 

stopdoingstuff

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Nobody expects the Spanish Buy-inquisition!
Our two main weapons are procrastination, denial, bargaining.....three weapons.........ok....among our weapons are procrastination, denial, bargaining, acceptance......
 

gerhard dengler

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This is looking like one of those sweetheart deals whereby the ECB asks Santander to buy Banco Popular in exchange for unlimited support.
10 years after the Spanish bubble bursts and we're only at this phase.
A good point.

Also during those 10 years, Spain created a "bad bank" which moped up several illiquid/insolvent cajxa lenders too.
 

SPN

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It's being reported that the 6th biggest bank in Spain - Banco Popular - has been acquired by Spanish bank Santander for €1.00, as instructed by the European Central Bank.
Santander also offered €1.00 for Allied Irish Bank at one stage.



The instruction for Santander to acquire Banco Popular by the ECB means that shareholders and some bondholders in Banco Popular will carry the cost of the banks failure, which is an interesting departure in itself.
Shareholders and bond holders in Irish Banks lost more than €40 Billion whenever the State nationalised them.
 

gerhard dengler

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Shareholders and bond holders in Irish Banks lost more than €40 Billion whenever the State nationalised them.
And not forgetting the Irish taxpayer. Who you always seem to deliberately exclude.

The Spanish taxpayer is, as of now, spared inclusion in the case of Banco Popular/Santander.
 

Windowshopper

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Our banks crashed first in many ways we were the laboratory as the ECB and EU made policy ad hoc.
 

SPN

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And not forgetting the Irish taxpayer. Who you always seem to deliberately exclude.
I don't "forget" the Irish tax payer. I point out what their role in fixing the mess actually was - they/we put in new capital after wiping out the previous shareholders and bond holders to the tune of €40 Billion.


The Spanish taxpayer is, as of now, spared inclusion in the case of Banco Popular/Santander.
Yep, and if any Irish Banks were to collapse post 2012 the Irish Government/Authorities would also follow the 2012 rules.

Unfortunately our crisis hit under the pre-2012 rules.
 

gerhard dengler

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I don't "forget" the Irish tax payer. I point out what their role in fixing the mess actually was - they/we put in new capital after wiping out the previous shareholders and bond holders to the tune of €40 Billion.
You didn't do so in your post.

You made no mention of the Irish taxpayer in fact.
 

SPN

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Our banks crashed first in many ways we were the laboratory as the ECB and EU made policy ad hoc.
The entire EU used the same model.

- The ECB put in the liquidity (Irish Banks needed 25% of all liquidity provided to EU banks because we had allowed our banks to fund 30 year mortgages with 90 day money).

- The States put in the capital (into their respective banks after the losses had been taken by the original providers of risk capital. As with Bank of Ireland, the State only put in what could not be found from the capital markets).

We were the first, but the hole in our banks was capable of being resolved using the October 2008 approach.

The Spanish problem, which has been carefully managed for years now, was not capable of being dealt with using the 2008 approach, hence the development of the 2012 approach.
 

SPN

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You didn't do so in your post.

You made no mention of the Irish taxpayer in fact.
I didn't do so in that post.

Because it was not relevant to the point I was flagging in that post.
 


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