MADRID | Bankia shares seem to have become a toy amid high volatility on the Madrid stock market index Ibex35. This week so far the entity suffered a -16.08 percent loss of price in two consecutive sessions, after the State fund for banking restructuring FROB announced that stockholders will be partially shouldering, too, the costs of the rescue of the bank with taxpayer money. Banco de Valencia stock fell by -23.8…
By Tania Suárez, in Madrid | Víctor Rodríguez is an economist at CMC Markets Spain. In an interview for The Corner, he said that Mario Draghi’s role is not so decisive in the debt crisis, although we could see important measures being applied by the European Central Bank. Regarding a possible bailout for Spain, Rodríguez considers that “if the country asks openly for it, the most likely reaction will be…
Some investors sell shares that they don’t actually hold but borrow under the expectation that prices will fall. If they are right, when they buy back, the stock comes at a cheaper cost than the amount they were paid for those same shares and so sellers can pocket the difference as a profit. A day after the Spanish financial regulator CNMV ruled a full suppression of these short selling practices over…
By Tania Suárez, in Madrid | In a context of economic crisis, where everybody feels on the verge, people are demanding justice. And justice, for a change, is doing its homework. Mirroring the process affecting Barclays, now is the turn of Bankia. The political party led by Rosa Díez, Unión Progreso y Democracia (UPyD), took legal action against the Spanish bank and filed a complaint with the Audiencia Nacional, the…
MADRID | Telefónica reported Monday to the Spanish financial regulator CNMV about the final completion of the merger process of Telefónica Móviles Colombia and Colombia Telecomunicaciones. The joint society will be owned by the Spanish company, which retains a 70 percent participation, and the Colombian State, with the remaining 30 percent. Telefónica explained that at the end of the second quarter of this year, this deal would cut its consolidated…
BARCELONA | The Spanish financial markets regulator CNMV admitted Copenhagen-based Greentech’s voluntary cash tender offer on all ordinary shares of Fersa. Greentech had submitted last Friday its prospectus to the CNMV for its voluntary public offer of acquisition of 100% of Fersa, offering €0.40 in cash for each Fersa share. By submitting the prospectus and legal documentation required, Greentech requested that the regulator approved its offer for the Catalan renewable energy…
MADRID |Deutsche Bank changed its financing strategy by registering a fixed income prospectus in Spain for the first time in history, as reported by the Spanish journal Expansión. The German entity will issue mainly bonds and mortgage notes for an amount of €15 billion, according to the initial information document, which has been sent to the Spanish Securities Exchange Commision or CNMV. Sources at the bank said that “this decision proves…
MADRID | Banco Santander on Monday announced that the banking group in Spain, including Banesto, will require €2.7 billion before taxes to comply with the new legislation passed last May 11 on real estate asset provisions. These charges are in addition to the reserves already made compulsory by a decree-law in February, of which €2.3 billion before taxes are still pending, as stated in a filing sent to the Spanish regulator…
By Julia Pastor, in Madrid | The Spanish stock market fell Thursday by 2%, specially because of the severe punishment suffered by its listed banks. On Friday, analysts at Link Securities commented that “as good news came from Greece, European financial shares were regaining ground but Spanish banks behaved differently… we see that the only reason that explain this fact is the end of the short- selling veto.” After France and…
By Julia Pastor, in Madrid | Last week, Rajoy’s government passed a Royal Decree, which forced all the Spanish financial entities to provision a total amount of €50bn to cover the losses coming from the property boom effect. But banks had not yet calculated their corresponding piece of the cake. On Tuesday, the three biggest Spanish entities, Santander, BBVA and Caixabank, communicated to the supervisor body –the Spanish Securities Market Commission– the…