In less than a week, JP Morgan has come to rectify a study about Spanish banks and the sector's capital needs to comply with new European regulation. Analysts at JP Morgan previously indicated that Caja Murcia-led Banco Mare Nostrum bore an attributed deficit of almost €7.8 billion, but they have now recognised it actually is €2.2 billion. The rectification suggests, though, that BNM would require public cash in a short period of time.
A news website based in Madrid, vozpopuli.com, reported that the mistake has triggered an internal warning, due to the magnitude of the figures. Analysts responsible for the accounting could be in the firing line, which seems a probable outcome, say experts in another investment company who are quoted by vozpopuli.
JP Morgan declined to comment when The Corner asked its department in London about possible further reviews.
JP Morgan explained that cost savings after the merger of several smaller credit institutions into BMN had not been taken into consideration in the first research paper. Also, analysts used the wrong classification table when adding up loans awarded to big corporations and medium-sized firms.
Now, the study states that Santander, BBVA, CaixaBank, Bankinter and KutxaBank will register no capital deficit. Banc Sabadell would need €531 million. Entities that have required government intervention need some €40 billion, with Bankia (€20.1 billion) and Catalunya Caixa (€7.13) in the frontline.
