Online:
Visits:
Stories:
Profile image
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Now SPAIN threatens to tear EU apart as banks LOSE €1.4BILLION in a day

Friday, May 27, 2016 5:10
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Image result for spain flag

Banco Popular, one of the Spain's leading financial firms, caused mayhem after admitting that it needed billions to bolster its balance sheet.

Shocked investors dumped shares in the firm, with the bank stock's value plunging by 24 per cent this morning, after the cash call and plans to issue another 2 billion shares.

It resulted in €1.4billion being wiped off the value of the bank's share price.

And the worry spread to other Spanish banks with shares in Caixabank and Banco de Sabadell diving by 3.4 per cent and 4.5 per cent respectively.

It comes after the country announced record debt levels, owing its creditors €1.095 trillion.

Spain now owes more money than its entire economy generates in a year.

Spanish Prime Minister Mariano Rajoy is struggling to deal with the worst public debt since 1909

Spanish banks are among Europe's firms suffering enormously under the burden of the low interest rate environment that erodes lending profits.

Steen Jakobsen, the chief economist at Saxo Bank said that today's news “is a very clear illustration of how difficult the banking sector has it with zero interest rates and non-growth we've had”.

In March, the European Central Bank dropped slashed core interest rates further into negative territory.

Today's cash call by Banco Popular is now a visible sign of the strain financial institutions in Europe are under.

The share price hit is the biggest one day loss the bank has ever seen, topping drops seen at the height of the financial crisis.

Credit to express.co.uk

http://www.express.co.uk/finance/city/674092/Eurozone-Spain-meltdown-shares-plummet-EU-Spanish-banks

http://nunezreport.blogspot.com/



Source: http://nunezreport.blogspot.com/2016/05/now-spain-threatens-to-tear-eu-apart-as.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.