econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 15 February 2017

Bankia Investigation Finds Links To Spain's Central Bank

Written by , Econoblog101

During the crisis, some Spanish banks were joined together and put into the market as “Bankia", which turned out - surprise! - to be a “bad" bank: lots of non-performing loans, and investors lost a lot of money. Now the criminal investigations have started and some people belonging to the leadership of the Spanish central bank, Banco de España, have been indicted, among them former IMF head Rodrigo Rato (2004-2007), who was also Spain's First Deputy Prime Minister (2003-2004).

bankia.shame

According to the The New York Times from Monday:

The case could be the first instance in which the apex of Spain’s financial regulatory system is held directly accountable for its failure to prevent the Bankia scandal, in particular the initial public offering, in which shareholders were wiped out.

This again opens up the discussion of EU banking rules, after the “bail-in" basically failed on its first test some two months ago when Italy decided to bail-out Banco Monte dei Pasci di Siena. Apparently, the rules did not work before the crisis and thus were changed during the crisis. However, it seems now that the new rules don’t work either. The European Union seems to be unable to deal with its financial and economic crises, and this is dangerous for the integrity of the European project.

According to the Eurobarometer 86 (Public Opinion), the biggest issues the member states face are unemployment, immigration and the economic situation in general. If the EU cannot get its act together in these areas we will see further dissolution of the project, however well-meant it is.

The banking troubles are the cause of the economic troubles of the eurozone, made worse by austerity policies, enforced rules that don’t work (“bail-in") and non-enforced rules that would (macroeconomic imbalances procedure). For all the talk in Germany about the importance “Ordnungspolitik" (basically institutions framing the way that markets work), the situation in Europe in 2017 is worse than ever before. It seems that nothing has been learned from the crisis yet.

For more news on this developing story:

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Opinion Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Opinion


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Is Free Trade Harming the Economy?
Bank of England Endorses Post-Keynesian Endogenous Money Theory
News Blog
ITunes Still Popular Among U.S. Music Lovers
President Trump, You Need A Lesson In Autism - Here It Is
Defense Budgets Are Surging In The Baltic States
What We Read Today 19 February 2017
Half Of Small Businesses Say Regulations Are A Problem
Historical Photos In Color
Total Household Debt Nears 2008 Peak But Debt Picture Looks Much Different
Parental Proximity And The Earnings Consequences Of Job Loss
The Evolution Of Home Equity Ownership - Part Two Of Five
How To Easily ID Support And Resistance On Your Charts
Infographic Of The Day: Hollywood Vs. Real Life: How Realistic Are Romantic Comedies
Early Headlines: New Travel Ban, Trump And McCain On Media, Greek Tragedy, Iraq Moves On W. Mosul, US Pushes China On N. Korea, China Wants To Deal, Emoluments Test And More
New Seasonal Outlook Updates from NOAA and JAMSTEC Disagree ...
Investing Blog
Bulls Keep Running, But . . .
The Week Ahead: Trump And The Business Cycle
Opinion Blog
At A Turning Point In US History, Shepard Smith Denounces Trump
Winter Olympics 2022: Beijing And China's Second 'Coming-Out Party'
Precious Metals Blog
The Best Gold Stock To Buy Right Now
Live Markets
17Feb2017 Market Close: US Markets Close In The Green Surprising The Bearish Analysts, Monday Markets Will Be Closed For Presidents Day Holiday
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved