spain

Greek contagion spreading to Spain

Discussion of the economic crisis in Europe has been largely confined to Greece and how it effects the Euro. All that changed this week.
It all started with the Spanish banks at the start of the week.

CajaMurcia, Caja Granada, Sa Nostra, and Caixa are joining together in a SIP (System of Integrated Protection), which will combine bank reserves and result in a firm worth €100 billion, according to Cotizalia.
This comes after yesterday's announcement that four banks, Cajastur, Caja de Ahorros del Mediterráneo, Caja Extremadura, and Caja Cantabria were merging under a similar agreement.
All of this started with the weekend's €530 million bailout of CajaSur, and is sure to continue as Spain tries to sure up its banking sector under IMF pressure.

Sudden mergers of major banks, following a major bank bailout, is very suspicious. The markets noticed, and two days later the Spain's central bank was forced to act.

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