Failed CajaSur Fallout Accelerates: 4 Spanish Savings Banks To Merge In “Cold Fusion”, €135 Billion In Assets At Stake
by Tyler Durden
Reuters and Bloomberg report that 4 Spanish savings banks are set to merge, likely as a result of the pent up fallout from the failure of CajaSur, which as we noted earlier, was taken over by the Bank of Spain. The culprit it appears is Caja de Ahorros del Mediterraneo which is merging with 3 other banks, Caja de Ahorros de Asturias, Caja de Ahorros de Santander y Cabria and Caja MP de Extremadura, to prevent a collapse. Since Spain apparently lacks the FDIC’s tender wealth redistribution hand, it is still unclear whether the transaction will obtain government funding. Just as the subprime collapse started with a few names toppling, this could easily be the start of implosion of the allegedly insolvent Spanish banking system.
More from Reuters:
MADRID, May 24 (Reuters) – Three Spanish regional savings banks, led by Caja de Ahorros de Mediterraneo said on Monday they have reached a preliminary agreement to merge some of their operations.
The agreement, which also includes Caja de Ahorros de Asturias and Caja de Ahorros y Monte de Piedad de Extremadura, would aim to create a joint banking group that allows to “strengthen solvency and assets of the participating banks.”
And here is the original source from valenciaplaza.com (h/t @vctrjmnz), via Google translate: