Home Finance Spain’s 6th largest bank was sold for just 1 euro

Spain’s 6th largest bank was sold for just 1 euro


The 6th largest bank of Spain, “Popular”, was sold to Santander for 1 euro when it came to bankruptcy. The stocks of the Popular Bank fell more than 50% for the last 8 days. 100% of the Popular Bank, which was declared “unable to do business” by the European Central Bank and the Spanish Bank Restructuring Fund (FROB) was sold to Santander for just 1 euro. Santander, the country’s largest bank, announced its plans to go for a capital increase of 7 billion euros to save the Popular Bank.

While the European Central Bank pointed out that the state aid fund was never used in the rescue operation of the Popular Bank, the Spanish Economy Minister Luis de Guindos also considered the end of sale as a “good exit” without using public resources. The sources of the European Commission also point out that the Popular Bank, which they pointed out as “unavoidable”, supported the devolution to Santander.

Meanwhile, it is reported that the accounts of the 17 million customers of the Popular Bank in Spain and Portugal has been under state guarantee. But, it is also stated that about 305,152 shareholders of the Popular Bank has lost all of their investments as of late March.

In addition, the Spanish National Stock Exchange Commission (CNMV) has taken a decision to stop all stock exchange transactions on linked to the Popular bank.


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