"Don't Panic" Banco Popular Tells Employees After Stock Crashes Most On Record

Tyler Durden's picture

It is increasingly likely that Italy (which has been busy bailing out various insolvent banks while pretending it isn't) won't be the first nation to try out Europe's new BRRD "bail-in" insolvency directive. Instead, that honor may go to Spain where the sixth-largest bank, Banco Popular plunged the most in 28 years amid investor concerns that the bad debt-laden bank may have to liquidate as neither a buyer nor a new capital raise appear likely.

As discussed yesterday, the underlying problem with Popular, as with most European banks, is familiar: the bank has been unable to sell €37 billion of nonperforming property loans fast enough, and is racing to find a partner after Spain's Economy Minister Luis de Guindos declined to consider a public bailout, while a capital increase has faced resistance from existing shareholders. The bank has said previously it could extend a June 10 deadline for binding takeover offers. So far none have emerged, which has prompted concerns about a deposit run, and - in circular fashion - sent the bank's asset prices crashing, which in turn is prompting depositors to pull even more money out of the bank, and so on...

But besides depositors, the plunge appears to have also spooked the bank's own employees, and today Spain's Expansion paper reports that Banco Popular Chairman Emilio Saracho sent a letter to staff assuring them the bank remains solvent after Friday's stock crash. In the letter, Saracho says the bank is facing “difficult circumstances, but we’re making the greatest effort to overcome them." Furthermore, the Chairman says that Popular has a number of options, citing a possible capital increase or corporate deal. What he didn't say is that the reason why the stock is where it is, is because the market no longer believes either of these options is credible.

More from the latter, courtesy of Expansion, google translated:

"From the management we are aware that the information that is being published affects the work and the spirit of each one of you, but our obligation as professionals is to focus on the day to day and on the clients, since the activity of the bank must continue as it has so far" begins the statement, whose target is the Professional Association of Directors Banco Popular.


The central message of this letter sent yesterday is the following: "Banco Popular remains solvent and has positive net worth".


"Our bank is in a difficult situation," says Saracho. "For this reason and in order to meet the regulatory requirements that the European Central Bank demands for next year and guarantee our strength and future, we are working on different alternatives.


"Our customers and our shareholders are the most important thing for us, and for this reason we must send them a message of confidence and confidence that we are making every effort to overcome this situation," the letter concludes.

In short, Saracho urged the bank's group of 1,800 managers to continue working hard; saying business activity should go on as normal, and that it was important to instill confidence in clients and shareholders. Unfortunately, one look at the bank's recent surge in default risk as seen in its senior bond CDS, suggests that "those who panic first", may be doing the smart thing...

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JustPrintMoreDuh's picture

Dont panic ... why not make a large deposit instead? .... Please!

MANvsMACHINE's picture

"Our customers and our shareholders are the most important thing for us, and for this reason we must send them a message of confidence and confidence that we are making every effort to overcome this situation."

In other words, LIE.

jcaz's picture

"Do not sell your shares..... Before we get ours sold...."

AVmaster's picture

Don't panic is usually the last thing they say just before the.



evoila's picture

$37B of unsold, non-performing loans?


I think I hear the goldman mobile pulling up to take those off their hands....

AR15AU's picture

maybe they are holding a silver short hot potato.... :)

neidermeyer's picture

That's the definition of "hold".. 

myne's picture

"When it's bad enough, you have to lie "

tmosley's picture

Don't panic, and no matter what you do, don't forget your Spiderman towel.

vegan's picture

Shit... I forgot my Spiderman towel. Now what???

slice's picture

"Don't panic, and no matter what you do, don't forget your Spiderman towel."


Ha! Good one!

I had to look it up:


SoDamnMad's picture

Dear Employees:  My golden parachute is safe. Yours, not so much. Carry on.


Lumberjack's picture

Breaking: Toyota Divorces Tesla….


Reuters) – Toyota Motor Corp (7203.T) said on Saturday it had sold all shares in Tesla Inc (TSLA.O) by the end of 2016, having canceled its tie-up with the U.S. luxury automaker to jointly develop electric vehicles.



ACP's picture

The ECB is still printing a gajillion euros a month.


Lumberjack's picture

Great! I can burn euros in the stove cheaper than wood!

Antifaschistische's picture

The decision to partner with TSLA was a top floor corner office decision at Toyota.  I GUARANTEE you the engineers at Toyota started pounding the top floor with messages that "we could build a better/cheaper car than TSLA and we don't need any knowledge transfer!!

chunga's picture

Hang in there and remember..."A rising tide lifts all covfefes."

williambanzai7's picture

The bank will continue to honour all duly issued, fully paid and non- assessable Covfefes...

robertsgt40's picture

That's the ticket.  Keep the team rowing.  It helps keep the Titanic floating a little longer until the players abandon ship.

Stroke's picture

Emilio has a hacienda next to Angelo Mozillo, and Jon Corzine.....It's all good

BritBob's picture

Will the Spanisg government play the Gibraltar distraction card?


From the top down: -


Spanish king uses the address of the UN demand to Great Britain return Gibraltar(RT 22 Sep, 2016 )

PM  Rajoy- Gibraltar "this is the such territory in Europe and that affects to our own integrity territorial", said the Mr Rajoy, saying that Britain had "ignored the mandate" of the Assembly General of the UN. (Daily Telegraph, 26 September 2013)


Foreign Minister Dastis: « I am for "Gibraltar, Spanish", but you have to be smart. (8 feb, 2017 copeaxarquia.es).


Gibraltar - Some Relevant International Law: https://www.academia.edu/10575180/Gibraltar_-_Some_Relevant_Internationa...



Ah well, just politics.

nmewn's picture

Well I gotta say Bob, you are consistent if nothing else.

jcaz's picture

So is syphillis.....

DuneCreature's picture

Oh, Bob the Bot, you're back. .... Good.

Hold this OT post for me.


OT - Open Source Investigation Of - Seth Rich / WikiLeaks DNC docs / Awan Brothers crime blotter / FBI malfeasance in office, etc, etc.

George is at it again for those who give a fat shit.


Live Hard, I Give More Than A Shit, I Give The Whole USSA Outhouse, Die Free

~ DC v6.0

BandGap's picture

Don't walk, run!

Free Spider Man towels with a 100K deposit! Ends Tuesday!

nmewn's picture

"Don't sell Banco Popular! There's nothing wrong with Banco Popular!" - Jean-Claude Cramer ;-)

MANvsMACHINE's picture

You mean Banco Unpopular.

The central planners's picture

Now the banks has a reason to be popular. A load of toxic morgage backed loans.

Deep In Vocal Euphoria's picture

sad if somebody forgot his exit strategy 

Squid Viscous's picture

Jump you fuckers!!

Omega_Man's picture

just print more money..... don't worry be happy

Fake Trump's picture

The exit signage broke down. 

Horse Pizzle's picture

Invest in African oil wells, French armies,  and Italian banks.

CHoward's picture

I've seen this scenario play over and over throughut the years.  The CEO (or president of the comany) come out publicly and state how good things 'really' are and "we feel good about the future".  This movie always has a sad and sudden end. 

nmewn's picture

Because board members are never tried & then locked up for breaching their fiduciary duties. 

Huh Reeeally's picture

It's different this time /s

...and for this reason we must send them a message of confidence and confidence that we are making every effort to overcome this situation...

Ah yes, confidence, the only thing a con man can sell.

Con man, from the Urban Dictionary: One who gains the trust, or "confidence", of his victims (often called marks) in order to manipulate, steal from, or otherwise predate upon them

Sounds about right.

True Contrarian's picture

Surprised the letter to staff didn't just say,



Making Merica Great Again's picture

There is nothing to see hiier!

SpanishGoop's picture

won't be the first nation to try out Europe's new BRRD "bail-in" insolvency directive.


Wasnt that Cyprus ? 

booboo's picture

Well technically after it worked so well in Cyprus the ECB slapped an official name on it and patented it. If anyone wants to use it the have to pay Draghi a royalty.

True Contrarian's picture

Sure they'd be mad to do that........ Wouldn't they?

Secret Weapon's picture

In other news, Francisco Franco is still dead. 

xyzcracker's picture

Buying the dip Monday AM

adonisdemilo's picture

I thought all the bonds from Governments and banks were 10000 years already, at a minimum.

booboo's picture

Trillion Euro Coin being minted now, (backed by tulip bulbs)