The Banco Base fusion collapsed the other day, leaving CAM begging for government money. It’s obvious to anyone who has driven through Alicante and Valencia that there must be huge losses sitting on someone’s balance sheet. I remember commenting on the unfinished buildings dotting the landscape around Sant Cugat to my father-in-law, and he thought that it was nothing compared to the wastelands in Valencia.
Given the volume of freaked out calls from my family in-law about CAM, I’m starting to wonder if CAM is going to start seeing a flight of deposits soon. The 100,000 euro government deposit guarantee should cover most people, and it’s unlikely that there’d be much disruption of services in the case of a forced takeover. I am kind of happy that I managed to get rid of those CAM bonds at face value last year after an overly eager bank manager unilaterally decided that they would make a great investment for me.
If you are thinking of panicking (remember the old saying, if you are going to panic, panic early) and pulling your money out, the best way is generally to have your new bank “suck” the money into your new account, rather than trying to do it the other way around.