The Bail-Ins Begins: Banco Popular (the 6th largest bank in all of Spain) Bought Out For One €!
Yep, you read that correctly one stingy Euro!
This is both funny and a tragedy.
You should have heard the alarming news already, but the details are much worse and the contagion may already be spreading to other corporations.
The Global systemically important financial institutions (G-SIFI or SIFI) are protected by the new rules and this is the most recent demonstration of the protection racket!
Banco Popular: 1st Bank Collapse In The History Of The E.U.
Banco Popular’s stock fell from more than 30 Euros in 2007 to less than 33 cents this year, while the depositors scrambled to withdraw their deposits causing a bank-run.
Banco Santander acquired the collapsed bank for one Euro!
Tens of Billions of Euros are invested in stocks and bonds along with assets and properties in Banco Popular’s portfolio. Imagine the uncertainty and distrust circulating throughout the brokerages and hedge funds as massive wealth was wiped out in a single day.
At least Santander can say they saved themselves and other mega banks that had investments in Banco Popular’s financial instruments.
But, we should ask the question, was the problem solved?
The problem wasn’t solved after the 2007-2009 “Great Recession“, and still remains unresolved.
Spain has other banks in trouble, many are putting Liberbank Banco on their watch list.
Liberbank shares fell 20% amid Popular turmoil…
As the crisis deepens, we can expect the “Too Big To Fail” corporations to buy out troubled businesses and repossess property and collateral on loans.
Like the game of MONOPOLY the bank(sters) always wins.
After its most tumultuous week since the bailout days of 2012, Spain’s banking system is gripped by a climate of fear, uncertainty and distrust. Rather than allaying investor nerves, the shotgun bail-in and sale of Banco Popular to Santander on Tuesday has merely intensified them. –wolfstreet.com
…But since the bail-in of Popular, Liberbank’s shares have seriously crashed as panicked investors fled. Scenting fresh blood, short sellers were piling in. On Friday alone, shares plunged another 17%. At one point, they were down 38% before bouncing at the close of trading, much of it driven by the bank’s own share buybacks:
In the last three weeks a whole year’s worth of steadily rising gains on the stock market have been completely wiped out.
Title: Spain Bank COLLAPSES! Bailout for Just €1 as EU Completely Falling Apart!
Video posted 07 Jun 2017 by The Money GPS ~ Author Exposing the Truth
Title: Banking crisis in Spain. The demise of Banco Popular.
Video posted 11 Jun 2017 by Rod Navarro