The Spanish major banks have Santander buying the ailing Spanish bank Banco Popolare for eur 1, and the deal is executed immediately.
It is clear from a press release from the european bankkrishanteringsmekanismen SRB.
According to the press release assessed the European central bank on 6 June that the Banco Popular was on the way to fail or likely to fail. Thus informed, the european crisis management mechanism SRB and the Spanish bankkrishanteringsmyndigheten. Resolutionsbeslutet have the green light from the authorities and the EUROPEAN commission.
”The decision that was taken today to protect depositors and critical functions of the Banco Popular. This shows that the tools that were given krishanteringsmyndigheter after the financial crisis are effective when it comes to protect taxpayers from failing banks”, says Elke König, president of the european SRB.
Banco Santander will to implement a rights issue of eur 7 billion to strengthen the balance sheet in connection with the transaction, said the bank in a statement, according to Bloomberg News.
After the transactions are expected to impact on Banco Santander’s core tier I ratio to be neutral, citing the bank.
There have been medieuppgifter that Santander was preparing a bid for Banco Popular. A possible new share issue of € 5 billion has been mentioned.
Banco Populars share has fallen by 63 percent over the last month.
The EUROPEAN commission has approved the rescue of Banco Popolare, the commission announced in a press release.
The conditions for a resolution of the bank were met: the Bank was to fail, there were no private solutions and no action from the authorities could have prevented a bankkrasch.
No state aid has been. All bank customers have continued access to the whole of the amounts in their bank accounts.
The EU bankkrislagstiftning BRRD provides for the possibility of a sale of a business, the commission continued.
”It was the best solution to ensure the continuity of the bank’s critical functions and avoid significant adverse effects on financial stability. In this case, the library absorbed the losses completely of the shareholders and subordinated lenders”), the commission wrote.
Questions and comments always welcome in the newsroom[at]tradingportalen.com