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Two mid size Spanish banks down the sinkhole in less than a week

EURUSD News by Allie Longford on 07:30 June 09, 2017 EST
Annualized Spanish GDP runs at 3.3% according to the latest figures from INE and unemployment has been continuously reduced quarter after quarter for the past three years. But this apparent bonanza has not prevented two of the mid size national banks to collapse this week alone.

Earlier in the week Banco Popular was required by the Single Resolution Board (a part of the ECB) to be sold to the Santander Group for €1 as the bank's share price had dropped by more than 90% in the past weeks amid liquidity concerns. It's 300,000+ shareholders lost the 100% value of their shares while Santander took ownership in the absence of a competitive tender to purchase the troubled institution.

On Friday Liberbank has been temporarily suspended from the local stock exchange as its shares lost 18% the previous day and 31% right after the opening on the last day of the trading week.

Considering the amount of help banks have received from the ECB and almost a decade after the financial crash of 2007 the fact that European banks are still faltering is a reason for concern.