The European Commission ruled Tuesday that the bankruptcy of Banco Madrid “create problems for the stability of the Spanish financial system,” said a spokeswoman.
“The Commission understands that the Spanish authorities have all the legal tools to prevent the bankruptcy of Banco Madrid create problems for the stability of the Spanish financial system, “he said Vanessa Mock, spokesman for the Commission for financial issues.
Brussels” monitoring the situation, “he added, stating that under European law “all deposits up to 100,000 euros are protected.”
Since the financial crisis of 2008-2009, the EU adopted a series of measures to prevent a collapse of the financial system and that the breakdown of an entity creates a domino effect.
Spain, hit hard by the crisis and the bursting of the housing bubble, requested in 2012 a European rescue of 41,300 million euros to save their industry bank.
Banco Madrid, Spanish subsidiary of Private Banking Andorra (BPA) –sospechosa according to US authorities blanqueo–, filed Monday for bankruptcy after suffering a “strong financial deterioration” to Following intervention from its parent by the Andorran authorities.
The “decision follows the sharp deterioration in the financial position of Banco de Madrid, SA as a result of significant withdrawals of client funds that have occurred and the last known events that have affected its ability to address the timely fulfillment of its obligations, “the Bank of Spain said in a statement.
The decision has been taken by managers who had appointed the Spanish supervisor, after last Thursday decided to intervene Banco Madrid, following the example of the Andorran authorities with BPA, which the Spanish company is a subsidiary 100 .% since 2011
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