Deposit Bail In Risk as Spanish Bank’s Stocks and Bonds Crash

Max Keiser and Stacy Herbert

Max Keiser and Stacy Herbert

– Deposit bail in risk as stocks and bonds of Spanish bank –  Banco Popular – crash

– Banco Popular stock crashes most on record – down 63% this year to 34 euro cents

– Spanish bank tells employees – “Don’t panic”

– Risk of Spanish banking crisis as Banco Popular credit curve inverts

– Banco Popular needs to find at least €4 billion more capital – analysts

– Deposits over €100,000 (euro) vulnerable to bail-in

– EU, U.S., UK push for bank ‘bail-ins’ poses risks to depositors

Source: Google

Banco Popular’s shares crashed another 17 per cent yesterday to record lows amid concerns the Spanish bank may have to be “wound down” and could see bail-ins of investors and depositors.

There are increasing fears that there is no buyer for the bank and this saw its share price dropped to €0.34 (34 euro cents). The bank’s stocks had already fallen nearly 50 per cent in the last week and is down 63% this year.

Shares also fell sharply last Friday as hoped for buyers dropped out of the Banco Popular auction process. Final bids are due this week and international publications have reported that Spanish banking rivals BBVA and Bankia had been interested.

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