More Spanish Cold Fusion: Second Largest Savings Bank Caja Madrid Now In Merger Talks With 5 Smaller Banks

Remember the prediction that CajaSur was Spain's New Century? Yup, it's accelerating: keep an eye on this trend as it will soon become an avalanche. Can Goldman reverse merge its FDIC subsidiary over to Madrid, to "prevent" the imminent implosion of that banking system?

From Reuters:

MADRID, May 28 (Reuters) - Spain's second largest savings bank, Caja Madrid, is in preliminary merger talks with five regional savings banks, one of the lenders involved in the talks said on Friday.

Caja Avila said it is in talks for a virtual merger with Caja Madrid, Caja Insular de Canarias, Caixa Laietana, Caja Segovia and Caja Rioja.

Earlier, Spain's largest savings bank, La Caixa, also announced merger talks with a smaller regional lender, Caixa Girona.

Following the bailout of savings bank CajaSur last weekend, the Bank of Spain is pushing harder for mergers among small savings banks, whose credit quality has deteriorated sharply due to heavy exposure to Spain's ailing property sector.