Taken from www.businessweek.com
Banco de Valencia is the latest lender to fall victim to a property crash that has piled up 176 billion euros of soured assets on the books of Spanish banks. Mariano Rajoy, who yesterday won Spain’s general elections, has pledged to speed up a clean-up of the country’s banks that has so far cost 17.7 billion euros.
“We know that Spanish banks are under pressure to provision their real estate losses and raise capital and those that can’t are having to go to the government,” said Daragh Quinn, a banks analyst at Nomura International in Madrid.
The Bank of Spain said that it decided to remove Banco de Valencia’s managers after determining that “it had not been able to adopt the measures necessary to assure its viability” and having written to the bank demanding an “urgent and definitive solution for its situation.” The lender’s board notified the regulator today that it hadn’t been able to find such a solution, the central bank said.
Has anyone noticed any queues outside these Banks?