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4 More Spanish Savings Banks Reported To Be "Merging" As Spanish Economy Unravels

Tyler Durden's picture





 

And just when the bulls were hoping for a bounce, expansion.com reports that four new Spanish savings banks are considering a "cold fusion" which is another name for future bailout of one instead of four. The four banks are CajaMurcia, CajaGranada, Sa Nostra, Caixa Penedes and their combined assets amount to over €100 billion. As we expected, this weekend's bailout of Cajasur was Spain's equivalent to the New Century Financial blow up tipping out. Look for the unwind to accelerate now.

From expansion.com

CajaMurcia, CajaGranada, Sa Nostra, Caixa Penedes studying cold fusion

The four boxes alienated from the discussions with Caja Cantabria, Extremadura Caja Cajastur and now pose a cold junction. Those who were potential parteners of which now form the SIP by the CAM study the establishment of an Integrated System of Protection.

The union of these four entities could become the fourth or fifth volume of business entity, with over 100,000 million euros, or the sixth or seventh volume of active entity, with about 80,000 million.

It is still early to say an alliance between these four boxes unmarried, and some of them as Caja Granada prefer to remained silent. Only states, told Europa Press that talks with other entities in order to achieve "the best possible strategic alliance."

It has also targeted the "limitations and conditions as the Granada box keeps tackling talks with other boxes, such as" maintaining the brand, the absolute loyalty to the land and respect for staff. "

 


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Tue, 05/25/2010 - 10:54 | Link to Comment Zro
Zro's picture

About as stable as cardboard 'boxes'

Tue, 05/25/2010 - 11:13 | Link to Comment John McCloy
John McCloy's picture

http://www.youtube.com/watch?v=Ik0yz5Jo4Os

   This clip epitomizes the smoke and mirrors that is not just the U.S. stock market but global finance.

Tue, 05/25/2010 - 11:29 | Link to Comment dorksgetlaid2
dorksgetlaid2's picture

Has everyone seen this Australian clip?

http://www.youtube.com/watch?v=5D0VhS8qXT0

Hilarious.

Tue, 05/25/2010 - 10:56 | Link to Comment John McCloy
John McCloy's picture

    Expect search term "depression" to trend up in the google trends in coming weeks.

I had to laugh at the recent yahoo top search terms at the end of last week it was a real head scratcher.

It was literred with random celebritis and right smack in the middle was "Short Selling"

Tue, 05/25/2010 - 11:16 | Link to Comment pooplagrande
pooplagrande's picture

It will be interesting to see the tranformation of attention from Lindsay Lohan to Depression and Survival. How fat/stupid have people become? Just go to an airport and see the amount of overweight people reading People/US/OK/etc., sipping on bottled water and snacking on cheetos. A wake up call is coming...and I can't say it is not unwelcomed.

Tue, 05/25/2010 - 11:05 | Link to Comment Caviar Emptor
Caviar Emptor's picture

They didn't listen to Timmay and wait for Friday. Probably the situation was so bad they couldn't. Spain remains one of the powder kegs in Europe with a large number of unemployed youth and a tourist/ foreign beach bum economy. 

Rule of thumb going forward through the crisis: Follow The Shopping.

The entire global economy since the 1980s was based on one stupid principle: Shopping and the provision for shopping. (Sounds crazy, right? It is!) When cheap, recklessly leveraged credit for shopping dries up and exposes just how broke the average citizen really is, shopping suffers. And that, friends, is like kicking the crutch out from under an amputee. Everything deflates (except what still inflates, but that's another story)

Tue, 05/25/2010 - 11:07 | Link to Comment DosZap
DosZap's picture

Caviar,

Yeap, their Unemployment rate is actually worse than ours(is it possible?), 22%....................

Is this where we sing, "All they are is another Brick in the Wall?"

Tue, 05/25/2010 - 11:11 | Link to Comment Caviar Emptor
Caviar Emptor's picture

@Dos: They'll be singing in the streets pretty soon.....

Tue, 05/25/2010 - 11:13 | Link to Comment LongGold
LongGold's picture

Or maybe their unemployment number isn't as manipulated as yours ;-)  Shadowstats says the real US unemployment is 22% .

Tue, 05/25/2010 - 11:18 | Link to Comment Brett in Manhattan
Brett in Manhattan's picture

Yes, I'm quite certain Spain is completely free from corruption.

Wed, 05/26/2010 - 01:49 | Link to Comment thisandthat
thisandthat's picture

Yes, I heard outlawing it definitely killed it.

Tue, 05/25/2010 - 11:03 | Link to Comment peripatetic86
peripatetic86's picture

The dirtiest words of all: New Century.   Yes, indeed, this is one brave New Century....

Tue, 05/25/2010 - 11:04 | Link to Comment BobPaulson
BobPaulson's picture

Is there anywhere one can find a graph plotting a time series of bank failure frequency globally? It would be an interesting chart.

Tue, 05/25/2010 - 11:10 | Link to Comment Coldcall
Coldcall's picture

looks like that EU bailout arrived just in time for Spain. Thank you Germany :-0

Wed, 05/26/2010 - 01:59 | Link to Comment thisandthat
thisandthat's picture

JIT - the sign of an efficient economy.

Tue, 05/25/2010 - 11:11 | Link to Comment RowdyRoddyPiper
RowdyRoddyPiper's picture

Trying to read this post, it looks like the English language is being shorted. "WTF" is heading higher on big volume.  

Tue, 05/25/2010 - 11:14 | Link to Comment Josephine29
Josephine29's picture

I have been following the Spanish situation and posted a link to the  most recent notayesmanseconomics web blog article on her yesterday.Now seeing the news above I am reminded of part of his article.

"Whilst Cajasur in itself is not particularly significant the principles behind it are. For example if the Spanish press is accurate and the total losses on its loan book do approach 2 billion Euros then as its capital was only 229 million Euros a few concerned eyes might turn to other cajas and wonder what the real state of play is. So there is the fear that provisions in the caja sector as a whole will have to rise and one cannot avoid the feeling that the cajas will be less likely to loan money going forwards probably just at the time the Spanish economy most needs finance."

Spain is in difficult circumstances and I hope that the rest of his article saying that she has references to what Japan did in the early 1990s does not come true for her.

Tue, 05/25/2010 - 12:54 | Link to Comment Amsterdammer
Amsterdammer's picture

El Pais had a lengthy article yesterday:

Cajasur belongs to the Church, is losing 40 millions a

month, has 14 billion in deposits,has been meant

to merge with Unicaja for months and its executive

board refused the merger. The Spanish government

will inject 523 million euros in capital, the bank

having lost 596 million euros last year, and has

bad loans booked at 8,47%. Sheila Bair would love to

have a case like this, save for the fact that the

Caja needs to find a buyer

As for the "cold fusions"they were already under way.

Imho, it is the IMF's 'concern'that sparkled the

'market worries'.

As for the stress tests, expect the Ponzi eventually

to come out on the side of the French or German

banks; both W.Münchau and A.Pierce-Ritchard

have caught with their memory of a BAFIN worst case

scenario of the German Landesbanken having to write

off 800 billions euros in bad loans-a third of Germany's GDP

Tue, 05/25/2010 - 12:55 | Link to Comment Amsterdammer
Amsterdammer's picture

El Pais had a lengthy article yesterday:

Cajasur belongs to the Church, is losing 40 millions a

month, has 14 billion in deposits,has been meant

to merge with Unicaja for months and its executive

board refused the merger. The Spanish government

will inject 523 million euros in capital, the bank

having lost 596 million euros last year, and has

bad loans booked at 8,47%. Sheila Bair would love to

have a case like this, save for the fact that the

Caja needs to find a buyer

As for the "cold fusions"they were already under way.

Imho, it is the IMF's 'concern'that sparkled the

'market worries'.

As for the stress tests, expect the Ponzi eventually

to come out on the side of the French or German

banks; both W.Münchau and A.Pierce-Ritchard

have caught with their memory of a BAFIN worst case

scenario of the German Landesbanken having to write

off 800 billions euros in bad loans-a third of Germany's GDP

Tue, 05/25/2010 - 11:14 | Link to Comment umop episdn
umop episdn's picture

Since the 'Too Big To Fail' thingie worked so well in the USSA, I guess banksters all over the world will be merging. [insert appropriate non-word vocalization of disgust here]

Tue, 05/25/2010 - 12:14 | Link to Comment Cactus Rocky
Cactus Rocky's picture

It sounds marvelous in Spanish:  "Demasiado grande fallar."

Tue, 05/25/2010 - 11:15 | Link to Comment Brett in Manhattan
Brett in Manhattan's picture

I thought the problems in subprime, I mean Greece weren't gonna spread.

Tue, 05/25/2010 - 11:17 | Link to Comment sweet ebony diamond
sweet ebony diamond's picture

nobody likes the clawback idea?

or what about fraudulent conveyance?

Tue, 05/25/2010 - 11:22 | Link to Comment Whizbang
Whizbang's picture

I need some help spinning this as bullish, can anyone help me think of anything? I was thinking something like: "Fewer banks to complicate financial market make trading simpler in europe." or "fewer banks result in smaller carbon footprint" or "Spain: Compared to Vegas, the prostitutes are almost free! "

Tue, 05/25/2010 - 11:29 | Link to Comment markytom
markytom's picture

Weren't the austerity measures going to make everything in the Eurozone hunky-dory?

Tue, 05/25/2010 - 11:31 | Link to Comment JJ McApe
JJ McApe's picture

"We are the Borg. Lower your shields and surrender your ships. We will add your biological and technological distinctiveness to our own. Your culture will adapt to service us. Resistance is futile."

Tue, 05/25/2010 - 11:34 | Link to Comment Ragnarok
Ragnarok's picture

+10

Tue, 05/25/2010 - 11:32 | Link to Comment markytom
markytom's picture

Weren't the austerity measures going to make everything in the Eurozone hunky-dory?

Tue, 05/25/2010 - 11:36 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

Nuff said:

Someone made a killing on these. Spain highlighted due to the circumstances surrounding its banks, Norway; well because its just odd to see it there and Russia as a reference point to as why GAZPROM widened, and Ireland just to show who is next. Portugal is, oddly, absent from 12:30 data update, but if it shows up by the end of the day; well put it in the same basket as Ireland.

Tue, 05/25/2010 - 11:58 | Link to Comment BlackBeard
BlackBeard's picture

The 64 trillion question is: Who's the jackass that's underwritten the most of these puppies with no collateral for payout?

Tue, 05/25/2010 - 12:00 | Link to Comment Whizbang
Whizbang's picture

You, by which I mean AIG

Tue, 05/25/2010 - 12:29 | Link to Comment Cheeky Bastard
Cheeky Bastard's picture

16:30 [GMT] Update:


CDX North America IG , Series 14 1YR 2YR 3YR 5YR 7YR 10YR Fair Value 60.20 79.73 92.67 123.78 129.59 137.94 Market Spread 124.51 Skew +0.73 Month To Date +20.68 +25.11 +26.59 +31.07 +27.86 +25.58


CDX North America HY , Series 14 1YR 2YR 3YR 5YR 7YR 10YR Fair Value 315.81 (101.95) 419.96 (101.58) 495.58 (100.12) 620.99 (94.96) 607.07 (94.45) 596.35 (93.90) Market Spread 670.44 (93.00) Skew +49.46 Month To Date +112.75 +134.48 +145.20 +167.06 +148.64 +139.49


HY and IG both widen significantly. It looks like the derivatives market is once again the main indicator of things to come. Monitor China more closely in the coming days; since if the spread begins to widen on a daily basis it could mean Chinese Banks are buying on the open market to protect themselves and would also mean the bubble there has burst. HSI imploded this night and Nikkei followed the same path. Things are not just HTF in Europe; China is to.


Investment Grade Lagging Movers   Symbol Bond Price Change KMG.GN 102.96 -6.62 AOL.GG 109.00 -5.58 SPG.JU 105.00 -5.13 VZ.NG 107.77 -4.68 AOL.HL 101.97 -4.56 CS.LH 115.08 -4.45 WYE.GP 109.68 -4.37 AEP.JV 106.82 -3.62 SLM.LV 68.06 -3.39 BAC.GRH 95.73 -3.28 View Investment Grade Index Membership List     High Yield Lagging Movers   Symbol Bond Price Change CTB.GH 53.50 -21.50 F.GV 91.73 -5.15 ZION.GL 92.62 -4.88 F.GD 100.57 -4.43 FFRX.GF 96.96 -4.27 PKOH.GD 90.79 -4.21 GP.GT 95.05 -3.96 CAR.GE 96.51 -3.49 MBI.GF 54.47 -3.30 ALC.GD 98.65 -3.23 View High Yield Index Membership List

Tue, 05/25/2010 - 11:38 | Link to Comment papaswamp
papaswamp's picture

Creating a couple of TBTF entities for the Spanish govt to bailout...wait I thought they were already out of money?

Tue, 05/25/2010 - 12:02 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Spain is unravelling? News to me. Sounds like you guys are going on a fishing expedition.

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