Friday, June 11, 2010

Fusion of Spanish Cajas

I’m not sure what to make of the crazy mergers of every and any Caja in Spain.

The rather opaque involvement of Spain’s bank restructuring pool suggests that some of the cajas were actually insolvent prior to the forced mergers.

Of course, since the government guarantees apply to the combined entity, no blame needs to be assigned, which is perhaps the point of the exercise.

The actual mergers themselves are being done in a way that seems to invite future abuse by creating entities that don’t have clearly defined management hierarchies.

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