Spain's Bankia plunges on reports of massive withdrawals

brit1234

Spain's Bankia plunges on reports of massive withdrawals

Shares in Spain's Bankia, taken over by the state because of its troubled loans, plunged today after a newspaper said that clients had withdrawn more than €1 billion in the past week.


Shares in the bank, created in 2010 from a merger of seven savings banks, dropped by 27.49% to 1.2 euros in early afternoon trading, less than one-third of their value of 3.75 euros when the shares were listed on July 20, 2011.


The daily newspaper El Mundo reported today that Bankia managers told the board that in the past week, the bank had lost a "similar amount" of deposits as the €1.16 billion withdrawn by clients in the first quarter of the year.


http://www.rte.ie/news/2012/0517/spains-bankia-plunges-on-report-of-massive-withdr.html


http://www.guardian.co.uk/business/2012/may/17/eurozone-crisis-cameron-greece-euro-exit





Picture was one I made up 4 years ago, now other sources are using it as real, whoops.;)

brit1234

Alberto Gallo, head of credit research at Royal Bank of Scotland told the BBC: "The problem is Spanish banks are too large for the government to bear all of their weight."

"You [the Spanish government] need to make a choice and just protect stronger banks, otherwise Spain will go the way of Ireland - having to do a lot of austerity and potentially incurring losses for bank bondholders," he said.

I always thought selling off British banks to Santander was a bad idea.
Its going to get messy. Does anyone think things are escalating really fast now. All the previous interventions have just delayed this day coming to protect wealthy investors.

The_J

The 2 bigger Spanish banks are in a much stronger position because of their wider diversity. The capital flight from the crap banks should end up there.

The UK arm of Santander is strong and could easily exist as a separate entity.

I also think the "big grin" is in poor taste, regardless of your feelings this is going to hurt a lot of people and being happy about that is somewhat twisted.

pqrdef

brit1234 wrote: »

"The problem is Spanish banks are too large for the government to bear all of their weight."

Overmighty subjects, 21st-century style. So much for small government. Cut taxes, leave everything to the private sector, private sector screws up, needs government help, government hasn't got the resources.

Governments need to be big enough to manage and control the private sector, and then rescue it when it falls over. And never become dependent on it or allow it to call the shots.

Generali

Government spending in most countries is at or near an all time high for peace time.

grizzly1911

pqrdef wrote: »

Governments need to be big enough to manage and control the private sector, and then rescue it when it falls over. And never become dependent on it or allow it to call the shots.

No different to any other "outsourcing" in that it needs to be effectively managed, monitored and under timely review/audit and insurance/continuing risk assessment.

By the time you've done all that begs the question why you outsourced in the first place.

The_J

Generali wrote: »

Government spending in most countries is at or near an all time high for peace time.

Make no mistake, war is coming.

brit1234

The_J wrote: »

The 2 bigger Spanish banks are in a much stronger position because of their wider diversity. The capital flight from the crap banks should end up there.

The UK arm of Santander is strong and could easily exist as a separate entity.

I also think the "big grin" is in poor taste, regardless of your feelings this is going to hurt a lot of people and being happy about that is somewhat twisted.

Really, that is why they bought failed British banks with bad loans? I wouldn't call that strong at all. If they are so strong then why have the British arm reduce mortgage lending by £10 Billion this week?

As for the smiley face jab that's a bit rich from some one posing as a financial advisor or advising bad practice. Here is the thread you were caught out on:
https://forums.moneysavingexpert.com/discussion/3956169

I smile as this is the start of big correction which has been holding back our economy and starting sustainable growth. Keeping a zombie system together is not the answer. We want/need a healthy economy.

The_J

brit1234 wrote: »

Really, that is why they bought failed British banks with bad loans? I wouldn't call that strong at all. If they are so strong then why have the British arm reduce mortgage lending by £10 Billion this week?

As for the smiley face jab that's a bit rich from some one posing as a financial advisor or advising bad practice. Here is the thread you were caught out on:
https://forums.moneysavingexpert.com/discussion/3956169

I smile as this is the start of big correction which has been holding back our economy and starting sustainable growth. Keeping a zombie system together is not the answer. We want/need a healthy economy.

You're an idiot and have no concept of what is a bad bank. Just to clarify, they bought Abbey (not a bad bank), A&L (already owned by Abbey, also not a bad bank) and B&B (who had a bad mortgage book which guess what SANTANDER DIDN'T BUY). You are an absolute grade A moron.

Caught out on that thread? Rose tinted glasses mate or just blind? I kicked !!!, taught people the meaning of debt, my advice was spot on and I stand by it.

You may understand that if you ever manage to find a girl who can spend more than 5 minutes with you and want to start a family.

Graham_Devon

brit1234 wrote: »

As for the smiley face jab that's a bit rich from some one posing as a financial advisor or advising bad practice. Here is the thread you were caught out on:
https://forums.moneysavingexpert.com/discussion/3956169

That being just one of them!

Mortgage rates won't rise without BOE rates rising, we'd be idiots to think that!!

DpchMd

brit1234 wrote: »

Picture was one I made up 4 years ago, now other sources are using it as real, whoops.;)

David Icke stole your image?