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Europe Demands Nationalized Spanish Banks Fire 8,000 To Transfer First Bank Bailout Tranche

Tyler Durden's picture




 

For those still unsure why Spain PM Mariano Rajoy is fighting tooth and nail to avoid requesting an official activation of the ECB's SMP reincarnation: the OMT, which is a conditional bond buying program supposedly pari passu with the private market (but not really) here is an explanation. While Spain already requested, and received, a bailout of its banking system, which according to eronous analyses by firms such as Oliver Wyman will be at most €60 billion, and which according to others (such as us) will eventually end up costing orders of magnitude more once the green light for extortion is open for the New Normal modified vigilantes, said bailout would come with full conditions. Today we learn what a major condition of the first bank bailout tranche disbursement will be. It should come as no surprise to our readers- recall that in May when discussing the absolute lack of any actual austerity implementation we said, that "In fact, the epicenter of the current meltdown - Spanish banking - has seen only de-minimus headcount reduction over the past few years - so who is tightening their belts?" It seems someone at the Troika was paying attention, because as El Pais reported, European condition number 1 will be an epic bloodbath of pink slips come Monday, with Spanish banks expected to fire thousands of bank workers immediately and shut down 1,000 branches.

From Reuters:

European authorities will transfer 35 billion euros to Spain's state bank rescue fund on Dec. 15 in exchange for massive layoffs at Spain's four nationalised banks, including state-rescued Bankia, El Pais newspaper reported on Sunday.

 

The cash injection from European bailout funds will be disbursed to troubled Spanish banks two weeks after it is paid into Spain's bank restructuring fund, or FROB, the paper said.

 

Bankia, which sought a 23.5 billion euro bailout from the state in May, is expected to be forced to lay off up to 6,000 people from its current 20,000 staff, while NovaGalicia Bank is seen laying off 2,000 of its 5,800 workforce, said El Pais, citing European and banking sources.

 

Bankia and NovaGalicia Bank declined to comment on the report, which also said the banks would have to close 1,000 branches between the two of them.

 

Catalunya Caixa (CX) and Banco de Valencia, the other two nationalised lenders, are currently being sold off, and conditions would be imposed on the buyers, the paper said.

 

Spain's economy ministry also declined to comment on the date the aid could be disbursed to the state rescue fund, or the exact amounts the lenders would finally need.

This is the chart of bank employees we showed back in May:

So, the "massive" headcuts at the 4 nationalized banks will lower total bank headcount by... 3%. Surely this will fix Spain.

But the immediate problem for Spain is that these soon to be former 8000 workers at least used to collect paychecks, quite higher than average at that, and pay taxes on said earnings. That will soon end, and the immediate result will be even less government tax collections, even as the ongoing persistence in cutting any spending means the budget will continue to soar, and only pulling a Groupon, and revising the budget to exclude this, that and the other line item, will make Spain appear even remotely viable.

But the best news from today, and one we can't wait to witness first hand, will be Spanish cops and bankers protesting side by side against evil, and largely non-existent (sorry, the cut of the 13th annual salary is not belt tightening), austerity starting in 5... 4... 3...

 

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Sun, 11/25/2012 - 10:11 | 3009613 Dareconomics
Dareconomics's picture

Spain's bank bailout will eventually cost €200-300bn.

Sun, 11/25/2012 - 10:17 | 3009620 falak pema
falak pema's picture

Its time to castrate the bank owners not their employees. 

Sun, 11/25/2012 - 10:19 | 3009623 flacon
flacon's picture

May this Christmas season bring about personal liberty and national sovereignty!

Sun, 11/25/2012 - 10:21 | 3009624 falak pema
falak pema's picture

to think those spanish Oligarchs have pumped out of those very banks upto 800 billion to off shore accounts; now being hocked to the euro taxpayer! 

Sun, 11/25/2012 - 11:01 | 3009658 GetZeeGold
GetZeeGold's picture

 

 

Our stop story tonight......Generalissimo Francisco Franco is still dead.

 

http://www.youtube.com/watch?v=butZyxI-PRs

 

Good night.....and have have pleasant tomorrow.

Sun, 11/25/2012 - 12:02 | 3009692 Enslavethechild...
EnslavethechildrenforBen's picture

Printing $Billions is the same as stealing $Billions.

Then when you convince the people that they are the ones that are $Billions in debt and need to repay those $Billions with interest (when the people did not spend or recieve those $Billions), well that would be double-dip stealing.

If you calculate the $Billions in interest as a form of theft, like I do, then you could rightly say they are tripple-dip stealing bastards.

 If you also account for the property (and resources) that are confiscated from us for not being able to pay back (what is mathematically unpayable), then you could say that the criminals are quadruple-dipping theives.

One more decade of "government by central banking theft", and all us non-bankers will  be forced to work 16 hrs/day in labor camps, sleep in cardboard huts and eat canned dog food (so we can "fix the economy")

Sun, 11/25/2012 - 10:34 | 3009640 ArkansasAngie
ArkansasAngie's picture

This should be a top down paring. 

And ... let's not forget that that starts with the board of directors.

Moral hazard ... nature's systemic cleaning agent aka purge

If only this were coming to America

Sun, 11/25/2012 - 19:41 | 3010409 Dugald
Dugald's picture

 

Patience Grasshopper..........

Sun, 11/25/2012 - 11:14 | 3009671 Jason T
Jason T's picture

I junked it because first off, that's what they used to do to bankers/minters who committed fraud.  It's just too brutal I think.. 

Dante had these guys place correct in his circles of hell.. but utlimitely, best to let God decide their fate.

 

Sun, 11/25/2012 - 11:21 | 3009684 falak pema
falak pema's picture

god, if you call him that, decides their fate in the AFTER world, Man decides their fate in this world. 

Where's ur logic! Dante talked about the afterworld, I talk about now! 

When I say "castrate " them I mean "bankrupt" them like they want to do to their staff. Money is their true "cojones!".

Mon, 11/26/2012 - 01:28 | 3010723 old naughty
old naughty's picture

instant Karma.

Sun, 11/25/2012 - 10:14 | 3009616 SpanishGoop
SpanishGoop's picture

Spain, soon to be called Greece II or Greece-West.

 

 

Sun, 11/25/2012 - 10:57 | 3009655 Winston Churchill
Winston Churchill's picture

Both should  be renamed to;

Gaza II ,and Gaza III.

Or is that V and VI ?

Mon, 11/26/2012 - 01:30 | 3010725 old naughty
old naughty's picture

Keep going...

It will be a list much longer than VI.

Sun, 11/25/2012 - 10:16 | 3009618 mikla
mikla's picture

European authorities demand layoffs.  Ok.  Spanish citizens should demand Europe go to Hell.

The reality is that the, "European Authorities" are not authorities.  They have no authority.

At some point, people will realize this, and get on with their lives -- outside of a centralized totalitarian authority in a far-away land.

True, the "bank employees" are insignificant when it comes to "creating value" (e.g., their rituals at the bank don't make anyone's lives better).  But, it's silly that anyone give any credence to what the, "European Authorities" think.

Sun, 11/25/2012 - 10:18 | 3009622 SpanishGoop
SpanishGoop's picture

Having money is having authority.

At least for now.

 

 

 

Sun, 11/25/2012 - 11:12 | 3009667 mikla
mikla's picture

They have the *illusion* of money.  They don't have money.

They don't have authority.  People only pretend they do (on both sides).  Rather, for some strange reason, humans seem to like to defer their sovereignty to these usurpers that don't even adhere to their own laws.

Sun, 11/25/2012 - 13:11 | 3009822 OneTinSoldier66
OneTinSoldier66's picture

There is no Government. It's just a bunch of people running around trying to look important, and trying to they have the right to use force and coercion against you.

Sun, 11/25/2012 - 15:36 | 3010090 _ConanTheLibert...
_ConanTheLibertarian_'s picture

"He who has the gold, makes the rules", coming to a country near you.

 

Sun, 11/25/2012 - 10:39 | 3009645 shovelhead
shovelhead's picture

I agree,

There should be absolutely no reason for bankrupt companies to lay off any employees in the new 'normal' business model. Struggling enterprises need to search for added value services to offer to boost the bottom line and restore robust growth.

Banks need to offer creative new enticements to halt capital flight. such as a deposit of 100 euros will come with a free lap dance by the teller of choice.

Everyone should be a winner in the race to oblivion.

 

Sun, 11/25/2012 - 10:42 | 3009647 SpanishGoop
SpanishGoop's picture

Banks need to offer creative new enticements...

That worked out alright in the passed......

 

Sun, 11/25/2012 - 11:15 | 3009676 Dr. Richard Head
Dr. Richard Head's picture

I have got a fucking great idea! We could give out Amazing Spider-Man beach towels with every savings account opening. Talk about an incentive.

Sun, 11/25/2012 - 12:56 | 3009799 TheFourthStooge-ing
TheFourthStooge-ing's picture

Dr. Richard Head, in a display of pure brilliance, said:

I have got a fucking great idea! We could give out Amazing Spider-Man beach towels with every savings account opening. Talk about an incentive.

That is absolutely pure fucking brilliance! The guaranteed success of this idea is self-evident. There is simply no way that it can fail.

It's hard to imagine why nobody has come up with such an elegant, foolproof solution until now. The next step is to put the Greeks to work manufacturing Amazing Spider-Man beach towels. It's a win-win for the world-world!

I tip my hat to the good doctor and his ingenuity.

Sun, 11/25/2012 - 10:51 | 3009652 shovelhead
shovelhead's picture

(Private vault time with a happy ending - 1000 euro minimum deposit.)

Sun, 11/25/2012 - 16:52 | 3010193 MillionDollarBoner_
MillionDollarBoner_'s picture

"Private vault time with a happy ending"

I would "splash out" on that.

In fact I'd probably "spend" my entire "wad".

Might even be tempted to a "double-dip".

I could go on... 

Sun, 11/25/2012 - 14:21 | 3009955 booboo
booboo's picture

"Spanish Citizens"???

They along with every other goat on the planet started singing "We are the World" long ago and abdicated their citizenship. Time to pay the cranky amusement ride operator or shovel elephant shit, the lions need to be fed too.

Sun, 11/25/2012 - 10:16 | 3009619 Garristotle
Garristotle's picture

If only they had a magical money fairy over in Europe...

http://www.memecreator.org/meme/ben-bernanke-is-a...-...magical-money-fa...

 

 

Sun, 11/25/2012 - 15:28 | 3010075 cranky-old-geezer
cranky-old-geezer's picture

 

 

They do.  ECB.

Sun, 11/25/2012 - 16:50 | 3010186 Ghordius
Ghordius's picture

Ze princess in the clawz of ze DraghiOn

Sun, 11/25/2012 - 10:27 | 3009632 rodocostarica
rodocostarica's picture

Close 1,000 branches. Bullish for real estate. New Tapas bars on major corners and shopping malls.

Sun, 11/25/2012 - 10:28 | 3009633 j0nx
j0nx's picture

So... 7999 tellers and 1 sacrificial mid-level branch manager?

Sun, 11/25/2012 - 11:10 | 3009666 Disenchanted
Disenchanted's picture

 

 

yup, fire the low level worker bees. That'll fix it...

Sun, 11/25/2012 - 10:45 | 3009649 lindaamick
lindaamick's picture

Anybody with an ounce of intelligence has to question how austerity and downsizing will resolve economic issures. 

The facts are that spending is the lubricant of economies.  The labor class spends a far greater amount than the few rich who are the only benefactors of austerity and downsizing, buying the necessities of life.

Laying off 8000 workers who will spend their earning vs laying off executives who represent smaller numbers who spend far less is a fool's errand.

The shock is how few laborers are cognizant of the real situation going on in Spain and most everywhere else.

 

Sun, 11/25/2012 - 11:13 | 3009669 Harlequin001
Harlequin001's picture

'The labor class spends a far greater amount than the few rich who are the only benefactors of austerity '

and where in your statement does the bit about my entitlement as a rich bastard and to own assets and to retain my wealth as I see fit fit in?

Fact is that employing people for the sake of it in non productive capacities just so we can say they are employed creates no wealth and fulfils no purpose, other than to be able to claim they are employed.

as a society we should get rid of these people so that they can find productive work and actually create something, like wealth maybe...

Sun, 11/25/2012 - 11:43 | 3009672 Ol Man
Ol Man's picture

Anybody with an once of intelligence would question how you can spend more than you earn, indefinitely...

;>)

Sun, 11/25/2012 - 12:08 | 3009734 Enslavethechild...
EnslavethechildrenforBen's picture

Timmay says the best way is print to infinity and beyond, and that inflation will only be 2%

Bankerticians never lie.

Sun, 11/25/2012 - 11:37 | 3009699 shovelhead
shovelhead's picture

I can see how borrowing more money to pay people to count paper clips for an insolvent (and nationalized) bank will lead to prosperity.

What could go wrong there?

As a good American, I feel it is my duty to commit my unborn (as yet) grandchildren to paying taxes to bail out  Spanish and German (and everyone else) bondholders.

It's only fair.

We're doing it for the children.

Sun, 11/25/2012 - 13:11 | 3009827 Anusocracy
Anusocracy's picture

Being forced to be someone's slave gives meaning to your life.

Sun, 11/25/2012 - 15:51 | 3010108 cranky-old-geezer
cranky-old-geezer's picture

 

 

Anybody with an ounce of intelligence has to realize it's just a big looting spree.  

There, fixed it.

Banks never get fixed regardless of how many billions are shoveled at them. 

Where does all that money go?  It doesn't make it to the balance sheet, it goes in to pockets without the balance sheet ever seeing it.

Banks are money laundering vehicles now.  Laundering wealth from the public to god knows how many private individuals under the banner of "saving the banks".

Bailout after bailout, never fixed, always needing another bailout. 

Even the dumbest person will see it after a while, after 4 or 5 rounds of bailouts and banks STILL aren't fixed.

Between open-ended govt borrowing and never-ending bank bailouts, so much currency is gonna be created it'll lose all value at some point.

Debt collapse isn't the problem.  There isn't any so-called "fiscal cliff" coming.

Currency collapse is the problem.  Printing so much currency it loses all value.

Say what?  It's in reserve accounts?  Not in the circulating money supply?

Maybe that's true for bank bailouts, but not for govt borrowing, it goes right into the circulating money supply as govt spends it.

And those trillions in reserve accounts?  It'll come out and be spent at some point.

 

Sun, 11/25/2012 - 10:56 | 3009654 BlowsAgainstthe...
BlowsAgainsttheEmpire's picture

Meanwhile, from the FT, we have this . . .

 

Catalonia votes in key regional election

By Miles Johnson and Julius Purcell in Barcelona

“Catalonians on Sunday vote in local elections likely to install a government committed to pushing through a referendum on independence, that Madrid has said would be illegal under the Spanish constitution.

The snap elections, billed as the most important in the country’s post Franco history, were called following a spat between Spain’s ruling Popular Party and Catalan president Artur Mas over the way the heavily indebted region is financed. Mr Mas’s Convergència i Unió party argued Catalonia must be granted greater control over its tax revenues.”

WTF?  So I guess wanting control over your tax revenues is illegal.

 

 

http://www.ft.com/cms/s/0/ac5637d2-36fb-11e2-893a-00144feabdc0.html#ixzz2DFK1w9h2

Sun, 11/25/2012 - 11:04 | 3009659 john39
john39's picture

the Southern states in the U.S. tried that during the 1800's...  didn't go over so well with the central government.

propaganda minister spielberg tells us that it was all about slavery...  what he leaves out is the controllers just changed the model to a more free range slavery system... debt in place of chains and whips.

Sun, 11/25/2012 - 11:56 | 3009718 shovelhead
shovelhead's picture

I see you are an aficionado of the dramatic arts.

"Sign this NINJA loan or we'll sell those children of yours down the river."

"Yassur, I's signin boss...don't sell de chilluns down de ribber."

Sun, 11/25/2012 - 11:01 | 3009657 garcam123
garcam123's picture

Something is going to pop there in Spain soon and the common people are going to assault the central banks and burn them out and destroy the record keeping systems and kill the bankers and that will be that for Europe.

History shows that there will be blood in the streets.  It is like a clensing of the body politic and new "leaders" will emerge to begin the process of plundering the working class all over again.

It needs to get started, in my view.

Sun, 11/25/2012 - 11:15 | 3009675 vote_libertaria...
vote_libertarian_party's picture

Why do I get another Greece vibe here?

 

Spain PROMISES to fire 8,000

Cashes check

Never fires 8,000

Sun, 11/25/2012 - 15:20 | 3010065 Don Diego
Don Diego's picture

most of them will be pre-retired at 80% salary at taxpayers expense. Many of those regional bank employees are family members of the politicians, they will take care of them....at taxpayers expense of course.

Sun, 11/25/2012 - 11:57 | 3009720 SpanishGoop
SpanishGoop's picture

Europe is like a bunch of kids playing a "grown ups"  monopoly game.

Who has the cash and who has the assets.

At the end, the one who does not like the outcome of the game will throw the board over.

 

 

Sun, 11/25/2012 - 12:16 | 3009741 virgilcaine
virgilcaine's picture

Hard to get a pig away from the feeding trough.. good luck with that.

Sun, 11/25/2012 - 12:39 | 3009768 virgilcaine
virgilcaine's picture

Geithner said last Year the US would "never lose it's AAA credit rating" this Year he says the Debt Celing should be "raised to Infinity"! Who else could get away with statements like these?

http://en.wikipedia.org/wiki/Misfeasance

Sun, 11/25/2012 - 14:20 | 3009954 Winston Churchill
Winston Churchill's picture

Prefer the English malfeasance, to the American version myself.

Sun, 11/25/2012 - 12:43 | 3009779 Volaille de Bresse
Volaille de Bresse's picture

"Spain's bank bailout will eventually cost €200-300bn."

 

Yeah but to whom? France and Germany?

Btw I'd say it'll in fact cost 500 to 800 bil...

Sun, 11/25/2012 - 12:45 | 3009781 ISEEIT
ISEEIT's picture

Well I would think this must be good for at least another 150pip pop? Might even test 1.32 by the 30th.

I'm holding my breath for the much anticipated Argentina 'all in' capital investment partnership with Spain, no doubt soon to be announced. Such a 'program' would surely demonstrate the seriousness with which global leaders view these curious goings on in Europe.

I swear to recall some sort of alliance being discussed concerning Japan/Spain/Greece/Venezuela/Argentina and possibly even California. Might have been something I picked up on twitter or facebook..Not sure?

Sun, 11/25/2012 - 12:46 | 3009783 Volaille de Bresse
Volaille de Bresse's picture

"Why do I get another Greece vibe here?

Spain PROMISES to fire 8,000

Cashes check

Never fires 8,000"

 

It's a good one but I kinda foresee that 5 years from now being employed or unemployed will not make much difference. In both cases you'll be below poverty level...

Sun, 11/25/2012 - 14:18 | 3009951 Joebloinvestor
Joebloinvestor's picture

BFD.

Spain & Greece are chump change considering what it will take to save France.

Sun, 11/25/2012 - 14:18 | 3009952 Joebloinvestor
Joebloinvestor's picture

BFD.

Spain & Greece are chump change considering what it will take to save France.

Sun, 11/25/2012 - 14:22 | 3009953 Joebloinvestor
Joebloinvestor's picture

BFD.

Spain & Greece are chump change considering what it will take to save France.

Sorry for the mutiple posts.

Sun, 11/25/2012 - 17:14 | 3010228 Freewheelin Franklin
Freewheelin Franklin's picture

So, they will be starting at the top? 

 

No, you say?

Sun, 11/25/2012 - 18:13 | 3010283 david goliath
david goliath's picture

who will be a hero and fire the shot heard around the world?

Sun, 11/25/2012 - 20:32 | 3010473 TNTARG
TNTARG's picture

These gus are out of their fuc...ng mind!

Here's a Story they should see, specialy chapters 4 to 6... Everybody should see.

http://www.youtube.com/watch?v=6Xij3_UBcis

From the argentinean people with regards.

It's in Spanish. Have a nice view.

Sun, 11/25/2012 - 21:53 | 3010567 Never One Roach
Never One Roach's picture

Bailouts are a Golden Goose for bankers---tons of commissions and bonuses.

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