CALDEIRÃO DE BOLSA

Zeroedge Escreveu:
Caja Madrid To Ask For €3 Billion In Government Support

Submitted by Tyler Durden on 06/01/2010 09:23 -0500

Earlier we reported that Caja Madrid was put on downgrade review by S&P, following Friday's puke fest on all things Spanish by Fitch. The rating agencies may have gotten it right for once: MarketWatch reports that according to a report, Caja Madrid "will tap the government for €3 billion in rescue funds." That CajaSur "New Century" domino, as we predicted, is starting to really set in.

More from MarketWatch on the collapsing Spanish depository and banking sector:

"Up until a couple of weeks ago, the term "caja", which literally means box or chest, was not such a familiar term with global investors, but many are now getting a crash course as news is rapidly spilling out from the sector.

Spain has 45 savings banks and an increasing number are now in merger talks -- ailing from the collapse of the housing market -- amid some estimates that the country has 30% more bank branches than it needs.

Pressure to merge and restructure has come from the International Monetary Fund and the Spanish government.

The government has set up a Fund for Orderly Bank Restructuring, or FROB, to speed along this process, and given the savings banks until June 30 to ask for the money they need.

The fund has a total value of €99 billion and is funded with €9 billion of capital and up to €90 billion of government-backed debt."

Look for any temporary strength in the US stock market better known as the EURJPY cross to fizzle as fresh concerns about Spain, and Italy, whose CDS hit a record level earlier, once again become dominant.

Atomez Escreveu:A Banca Portuguesa toda junta seria o 3º Banco Espanhol.

The Mechanic Escreveu:
Espanholada já está a concentrar a Banca . Muita banca pequena não tem o mesmo resultado que pouca Banca, mas grande .

Se virmos a dimensão da Banca Tuga comparada com a Espanhola e o seu "orgulhosamente sós ", vemos que esta porra assim não vái . E ainda falam em a " PT opar a Telefonica "...com que dinheiro ?! Com a intervenção do nosso super-Banco Santand...espera, esse não é nosso...ah...o da nossa Banqueta?! ...naaaa...



Um abraço ,

The Mechanic

Caja Madrid, Five Smaller Banks in Merger Discussions

May 28 (Bloomberg) -- Caja Madrid, Spain’s second-biggest savings bank, and five smaller lenders began talks on a possible merger as banking combinations accelerate ahead of a government rescue-fund deadline.

The Madrid-based lender with assets of about 190 billion euros ($235 billion) is in talks with Caja Insular de Canarias, Caixa Laietana, Caja de Avila, Caja Segovia and Caja Rioja over a combination under a Bank of Spain-endorsed model in which they would merge some central functions, the lender said in a filing to regulators today. The merger would combine lenders with total assets of about 228 billion euros, according to data from the Spanish savings-bank association, known as CECA.

Combinations among the foundation-based regional lenders known as “cajas” are proceeding apace as a June 30 deadline to tap government rescue funds approaches and the country’s property crash drives up loan defaults. The Bank of Spain took over CajaSur, an insolvent lender with about 19 billion euros in assets on May 22 and said May 26 it would speed up its schedule for provisioning bad loans.

“I think real progress has been made with the Bank of Spain showing clear institutional will and ability to apply pressure” on the cajas, Arturo de Frias, an analyst at Evolution Securities in London, said in a phone interview. “The famous June 30 deadline is fast approaching.”

La Caixa in Talks

Caja de Ahorros del Mediterraneo and four other savings banks with 135 billion euros in assets this week confirmed plans to merge. Today, La Caixa, Spain’s biggest savings bank, said it was in talks with Caixa Girona, a lender from the country’s Catalan region.

At least 23 of Spain’s 45 savings have either agreed or are in talks to conclude mergers, a spokesman for CECA said yesterday. Rodrigo de Rato, the former head of the International Monetary Fund who is Caja Madrid’s chairman, said April 14 he expected 20 cajas to emerge from the restructuring process.

Caja Madrid and the other lenders taking part in the merger didn’t say whether they would need funds from the rescue fund, which can hold as much as 99 billion euros to restructure banks through mergers or, if necessary, seizures.

Finance Minister Elena Salgado said at a news conference today in Madrid that the 27 billion euros that the government initially estimated as the size of the fund would “clearly be more than enough” to cover the cost of the restructurings. Standard & Poor’s estimates about 35 billion euros might be necessary while Credit Suisse Group AG said last year 60 billion euros might be needed.