Things Moving Quickly, As Spanish Government Forces Four Banks To Merge To Prop Up System

Spain European Championship

The Spanish government has just moved to support its banking system again, forcing four major banks to combine in a bid to save their existence.

The move targets Cajastur, Caja de Ahorros del Mediterráneo, Caja Extremadura, and Caja Cantabria, according to Cotizalia.

It comes just hours after Spain’s €530 million bailout of CajaSur.

The merger is not a full one, but brings four of Spain’s largest banks into a loose conglomeration. Assets under management for the new firm are valued at €135 billion.

Details are scarce of what the final agreement, negotiated by the Bank of Spain, will look like, but it appears banks within the agreement will maintain significant autonomy.

At the moment, this looks like a move that intends to provide capital support to weaker links within the grouping, though information is limited.

Check out just how bad the situation is in Spain here >

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