The Fund distance from your bank – Pysn People and Society News

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The indissoluble trinity who have been for years the Banking La Caixa Foundation, its holding company -Criteria-, and his flagship and core business -CaixaBank- be diluted significantly in the coming months.

Criteria announced Thursday that it will do its best to ensure that the results of the financial institution fail to consolidate their accounts. This will occur to reduce its position in the bank (heir of the former pension fund) from the current 56.8% to less than 40% stake . This barrier is the one that has marked the European Central Bank (ECB), with the dome of the Catalan club has been negotiating in recent months, according to the holding company 100% owned by the La Caixa Foundation in a note to the Comisión Nacional del Mercado de Valores (CNMV).

The objective behind this move is simply to reduce the capital cushion the ECB requires Criteria to time that mixed financial holding company. In the statement released Thursday, Criteria specifies that makes the decision after taking into account “disincentive measures to maintain contained in Law 26/2013 Control of Savings Banks and Banking Foundations”. These disincentives are growing demands to banking foundations depending on the degree of capital they have in financial institutions.

The spirit of this slight was to prevent the foundations of ancient thrifts have control of banks. The rule stated that banking foundations with more than 50% of a credit institution, as has hitherto been the case of the La Caixa Foundation are obliged to follow “a plan of risk and should constitute a reserve fund to meet the capital requirements of the investee. ”

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An uncomfortable mattress
the so-called ‘regulatory tsunami’ that the bank has denounced repeatedly (and as embodied in the need for institutions to maintain a cushion of equity higher to meet eventualities to avoid meltdowns like the financial Crisis of 2008) has finished taking the Caixa Foundation lose weight in your business logo, financial. The own note to the CNMV explicit that the “probable decision” of the European authorities to include Criteria within the perimeter of CaixaBank a possible scenario fall of the entity “commit all the assets of the Foundation bank in favor of a single investment (CaixaBank) “. With this move, then the assets of the Foundation La Caixa are protected, the world’s third largest after the US Bill & amp; amp; Melinda Gates Foundation and the Wellcome Trust. In addition, it is left in a more comfortable situation from the point of view Financial Criteria, investment arm of the Foundation.

The statement also CaixaBank concrete deadlines that this operation will take place “before the end of the year 2017″. Criteria then has 18 months to sell at least 16.9% of the bank, with the current share price is equivalent to 2,528 million euros.

conditions Frankfurt

The ECB has set for other conditions to the Fund to grant prudential deconsolidation demanding regarding the financial institution. You must have not only less than 40% of the shares but also must be less than this percentage of counselors. Board members who are you to request Criteria must abstain from voting on other directors and CaixaBank shall appoint an independent director “with broad powers” is responsible for relations with shareholders on corporate governance issues.

With the announced movement yesterday, the case delves into the line fixed in December (when it announced it would reduce its stake in the bank below 50%) although will remain, for now, the main shareholder of the first Catalan organization .

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