Banco Santander, the global megabank you must keep watching, is sharply lower again today.
In European trading, it’s down over 4.5% as worries about Spain and Portugal continue to escalate.
The US ADR last traded down 5.7%.
Just like with Ireland, banks may be Spain’s acchiles heel, because they won’t be allowed to fail, and if there is any kind of a “run” whether its depositors or bondholders fleeing the bank, that will put isntant pressure on the sovereign to raise money via a bailout.
Meanwhile, in what is probably one of the most depressingly tired headline we’ve seen yet, Bloomberg reports that Spain is betting on “budget cutting” to avert a crisis. Ha.