Caja Madrid which was looking for a Bailout from the Spanish Central Bank is merging with another large Caja Bancaja.The Central Bank is pressurizing the Cajas(Socially run Spanish Savings Banks) to merge with each other to reduce costs and improve management.This is being done with the help of a Bailout Carrot.The Cajas are basically badly […]
Spanish Cajas have been in the news recently acting as the equivalent of the “subprime sector” during the US financial crisis.CajaSur was seized by the Spanish Central Bank after running into massive losses in its real estate loan portfolio.The Cajas which are socially run not for profit banks in general have incompetent management and little […]