Bloomberg News

Caja Espana-Duero Seizure By Regulator May Be Imminent, ABC Says

March 04, 2012

Spain’s financial authorities may take over Caja Espana-Caja Duero, a Spanish lender, if Unicaja, another bank, doesn’t merge with it, ABC reported.

New rules requiring Caja Espana-Caja Duero to recognize losses on its real estate holdings have made Unicaja wary about completing a merger the two agreed to in September, the newspaper said, citing people close to Unicaja it didn’t identify. Bank of Spain, the nation’s central bank and financial watchdog, is demanding to know the status of the planned union, according to the report.

Telephone calls for comment to media relations officials at Caja Espana-Caja Duero and Unicaja went unanswered today. A spokesman for the Bank of Spain, who asked not to be identified by name in line with the agency’s policy, declined to comment by phone on the report.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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