Spanish Banks Hit Panic Button As Independence Odds Soar But 'Stall' Rumor Sparks Buying-Panic

Catalonia’s bid to separate from Spain had prompted investors to dump bonds issued by the region’s two biggest lenders, CaixaBank SA and Banco de Sabadell SA. Today, in a signal that the banks are taking thelikelihood of Catalonia independence very seriously, Sabadell has called a board meeting to approve a change of headquarters outside of the region.

The last few days' drop in Catalonia's biggest bank bonds has prompted an even more serious reaction by the banks themselves.

Sabadell notified the Spanish stock regulator CNMV that it will hold a board meeting today at 5pm local time on the possible change of location of its corporate HQ.

Bloomberg reports that the move was prompted by “uncertainty” from the challenge presented by independence movement, citing unidentified people in the market.

 

Sabadell officials offered no denial, saying HQ change would be to guarantee the legal safety that’s currently provided by the European Central Bank.

And as is clear, this is having a positive impact on the bonds (albeit modest).

 

Furthermore, Spanish Economy Minister Luis de Guindos told Bloomberg this morning that Catalan banks have indicated that if this process goes on, they are totally open to relocate their headquarters to other places in Spain.

Speaking on Thursday in a Bloomberg Television interview, de Guindos slammed the Catalan administration for its illegal actions and said independence is out of the question. Spain has nothing to discuss with the secessionists until rule of law is restored, he said. The instability may persuade Catalan banks to shift out of the region, he added.

“They have indicated that if this process goes on, they are totally open to relocating their headquarters to other places in Spain,” de Guindos said.

 

“This is a clear indication of how insane is the regional government of Catalonia.”

The bottom line indication from these moves is simple - the banks (and the government) are increasingly convinced that Catalan independence is going to happen.

And judging by Spain's decoupling from Germany...

And Catalonia's decoupling from Spain...

The market is not waiting for the final decision, even as Bloomberg reports that, according to two people familiar with their plans, Catalan separatists are trying to find a way to put off a definitive declaration of independence to create space for a negotiated settlement with Spain.

The movement’s leaders are divided over their next step, with hardliners from the party CUP demanding the regional government make good on its plans for a unilateral declaration of independence following Sunday’s illegal referendum, according to the people, who asked not to be named because the conversations are private.

 

Regional President Carles Puigdemont’s mainstream separatist group is concerned that such a move would have immediate negative consequences for the economy, the people said.

We find this a little doubtful and very interesting timing ahead of Monday's planned separation, that could well be designed to sow some more chaos as the establishment continues to paint the Catalonia-independence-voters as extremists...

Markets are ready to bounce on any headline...

Spanish Economy Minister Luis de Guindos said in a Bloomberg Television:

“The group within the Catalan government that is calling the shots is the CUP, an extremely radical group with a lot of anarchist links and they are the ones setting the agenda... Everybody has started to realize.”

 

“This is not a question of arbitration or mediation, it is a question of a government that has to enforce the law."

 

“There is nothing to negotiate without the full respect of the rule of law.”

Additionally, Bloomberg admits that a spokesman for the Catalan government didn’t respond to three calls and other messages seeking comment.

Comments

Don Diego syzygysus Thu, 10/05/2017 - 11:51 Permalink

the Catalan banks are the first business to be affected by the unstability as customers from the rest of Spain can close the account very fast with a few clicks. Other businesses like car maker Seat will feel the pain a bit later. I am opposed to a boycot as it hurts the silent majority of Catalans, who are opposed to this madness. They are the ones that work and support the secesSIONISTS who are mostly civil servants (you need to speak Catalan to be one), live with their parents or are paid to breed the new generation of Catalibans (Muslims).

In reply to by syzygysus

RagaMuffin Sauron Thu, 10/05/2017 - 10:41 Permalink

Check the dates on Cuba and the USA and you may begin to see everybody that  "agreed and Voted upon" is a long time dead - and therein lies the one of the problems. Google secession , USA and you will see the issues are not limited to Spain May be out of my mind, does not make me wrong as to what is happening, nor why

In reply to by Sauron

Overflow RagaMuffin Thu, 10/05/2017 - 10:32 Permalink

Oh, this one was voted, with >86% acceptance. Since then, constituionalist parties have won >85% of Parlament always. We've always had republican, seccesionist or anti-constitutional parties (yes, spanish "fascism" allows you to have a legal Anti-Spain party) but they get only <15% votes.  If >60% of Parlament want to change the Constitution, they can do it legally.  You only need about 50-55% of votes to get it.

In reply to by RagaMuffin

MoreFreedom RagaMuffin Thu, 10/05/2017 - 11:52 Permalink

The "rule of law" phrase in the article should be replaced by the phrase "Spanish domination of Catalonians" even though in a supposedly democratic country, having a vote to seceed is "a mockery of democracy"  while the democratic government is always telling its citizens to vote. It's two wolves and a sheep, voting on what's for dinner.  The Catalonians are tired of being milked for the other Spaniards.

In reply to by RagaMuffin

Overflow Thu, 10/05/2017 - 10:17 Permalink

Independence odds soar!LOL Definiively, ZH is lost. Noboy in the streets any more.  All secession leaders looking for someone to "negotiate" but nobody wants to talk to these clowns after their shameful methods have been revealed.  They've copied the Nazi handbook line by line; Mobbing oposition, children indoctrination, native language denial, assault to all media, riots against law... They have been blatantly defeated  and even their dumbest supporters are today with with white flags asking for forgiveness, in order to cool things down and start again in a few months. Independence odd soar.... Fuck you Durden, your are worse than CNN. At least they don't pretend to be "alternative" 

Sauron Overflow Thu, 10/05/2017 - 10:26 Permalink

This Catalan thing has really been an issue to report about.But the way it has been reported both here and on other websites (notably Don Quijones on wolfstreet...sad, very sad).Again, differences between facts and dreams...hard to learn.This may be going on and even get much worse, but it takes a lot of ignorance to think about it the way it's been reported 

In reply to by Overflow

wisehiney Overflow Thu, 10/05/2017 - 11:06 Permalink

Works for me. Early one day the sun wouldn't shineI was walking down the street not feeling too fineI saw two old men with a bottle between 'emAnd this was the song that I heard them singingLord preserve us and protect us,We've been drinking whiskey 'fore breakfastWell I stopped by the steps where they was sittingAnd I couldn't believe how drunk they were gettingI said "old men, have you been drinking long?"They said "just long enough to be singing this song"Lord preserve us and protect us,We've been drinking whiskey 'fore breakfastWell they passed me the bottle and I took a little sipAnd it felt so good I just couldn't quitI drank some more and next thing I knewThere were three of us sitting there singing this tuneLord preserve us and protect us,We've been drinking whiskey 'fore breakfastOne by one everybody in the townThey heard our ruckus and they all came downAnd pretty soon all the streets were ringingWith the sound of the whole town laughing and singingLord preserve us and protect us,We've been drinking whiskey 'fore breakfastLord preserve us and protect us,We've been drinking whiskey 'fore breakfast

In reply to by Overflow

Sauron Thu, 10/05/2017 - 10:17 Permalink

Baco Sabadell to approve this afternoon it is moving out from Barcelona.Caixabank is also at itDifferences between facts and deams are hard to learn

Martian Moon Thu, 10/05/2017 - 10:20 Permalink

Spaniards haven't worked in 500 years, that's the basic problemThe far flung colonies ripe for pillage are long goneAnd the nearby co-opted states are now refusing to pay tribute

The Count Thu, 10/05/2017 - 10:25 Permalink

Ah yes, the old Freedom and Democracy mantra heard by EU and US politicians....

Except of course if that means actually letting the people vote on something!

Dragon HAwk Thu, 10/05/2017 - 10:29 Permalink

The Old Stall till we figure something out Strategy.  followed by the Oh Shit, now what do we do Strategy.Something about sour grapes we didn't want them anyway, comes to Mind.

Overflow Dirtnapper Thu, 10/05/2017 - 11:26 Permalink

"The different tribes of Catalonia will hold a barther economy"Anna Gabriel, Member of Catalonia Parlament and oneof the leaders of independence movement. She supports tthe tribe should procreate and educate the children colectively, better than by their selfishpatriarchal  mother and father.http://www.huffingtonpost.es/2016/05/11/anna-gabriel-hijos_n_9906828.ht… By reading this Catalonia circus with your MSM narrative you are missing the biggest fun in years.

In reply to by Dirtnapper

Don Diego Thu, 10/05/2017 - 11:13 Permalink

LOLZ. ZH, the banks are not considering to move out of Catalonia because of independence, they are considering it because there is a massive boycot of Catalan businesses. People are closing their accounts in those two banks from Catalonian customers and from the rest of Spain. Some Spaniards have started to boycot Catalan products (I disagree but that is a fact).As some natives have been saying here, the slightly higher Catalan wealth is mostly due because they traditionally had a captive market in the rest of Spain. The Catalan products were protected by Spanish tariffs. Catalans and Basques, since they are the closest to Europe had received a lot of the investment of the state.Take as an example car maker Seat, good example of Catalan business. Started from zero in the Catalan region funded by the government of Spain. In their 60 years of story they have never produced a successful design of their own, and were using Fiat and now VW designs. Seat is mostly sold in the rest of Spain (60% plus). Now tell me how you replace 60% of your customer base because the Spaniards that are not going to follow the boycott will suddenly find their brand new Seat vandalized. Who else in Europe is going to buy a Seat if you can get a similar (and better) Skoda?

Overflow Thu, 10/05/2017 - 12:20 Permalink

This is a much more revealing headline for ZH about Catalonia. http://www.rtve.es/noticias/20151104/ue-andorra-intercambiaran-automati… Andorra is  where the catalan oligarchies, the most corrupt in Spain by a landslide, have been hoarding the loot of decades stealing comissions for every public budget. The independence hoax has always been a smoke screen for real isuues and a tool to get leverage against Madrid in budget or parlamentary deals. But in three months Andorra will open their records to Spanish Tax Agency and Courts. That's probably  one of the drivers that triggered this desperate action of their elites. Estimations give a figure around 30 Billion euros hidden there.