It never lets up.
Obscured somewhat by the spectacular antics of Deutsche Bank, there appears to be another bailout of two of Spain’s franken-banks in the works, between mostly state-owned Bankia and wholly state-own Banco Mare Nostrum (BMN). The news was released so quietly that even in Spain barely a living soul is aware it’s happening.
The Next Madcap Merger
The two banks, each the product of two madcap mergers of Spain’s most insolvent savings banks, will be merged into one giant entity that is expected to become Spain’s fourth biggest bank by assets. The merger has been on the cards for a number of months since Spain’s Economy Minister (and former Lehman Brothers advisor) Luis de Guindos began dropping hints that one of the first jobs of Spain’s next elected government would be to find a solution to BMN’s ownership issues. Now it’s being brought forward, probably because the chances of Spain having an elected government any time this year are fading by the hour…
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