All the day’s economic and financial news, including a bank rescue in Spain and the OECD’s latest global economic outlook
- Breaking: Failing Banco Popular taken over, for €1
- Santander to raise €7bn in new capital
- ECB triggered rescue process
- Coming up: UK house prices and OECD economic outlook
Nick Leeson, the rogue trader who broke Barings Bank in the 1990s, is struck by the symbolic price of today’s deal:
Banks are getting cheaper, Barings was £1, Banco Popular only €1 https://t.co/aNqq1OEaO8
Breaking news from Spain: Banco Santander has bought Banco Popular for €1, rescuing its fellow Spanish lender from from the brink of collapse.
Santander said it would raise €7bn to cover the capital shortfall and strengthen the balance sheet of Popular, after the European Central Bank deemed it to be “failing or likely to fail”.
“The significant deterioration of the liquidity situation of the bank in recent days led to a determination that the entity would have, in the near future, been unable to pay its debts or other liabilities as they fell due.