The Spanish government has moved to ‘bail out’ the first banking institution to fail in Spain during the current financial crisis.
In Spain, we have banks ‘bancos de credito’ and building societies ‘cajas de ahorros’, with the building societies being the most common place for Spaniards to keep their money. There are tons of building societies here, and the Caja Castilla La Mancha (CCM) isn’t the largest by a long way (I believe that this honour falls to La Caixa d’Estalvis i Pensions de Barcelona, ‘La Caixa’). In fact, CCM is apparently the newest of Spain’s building societies. All the same, news of troubles at CCM suggests that the building society system here, much touted as being safer than those in other European countries, isn’t quite as cast-iron as we’d been led to believe.
I bank with La Caixa (well, I have my salary paid there: I don’t get involved in anything more complex than having a credit card), and I will be damned annoyed if it appears that the Barcelona bank is in trouble too. The amount they charge me for basic services….
Let’s hope that this so-called bail out means that normal customers don’t end up losing any of their cash. But shouldn’t we be pushing for a full nationalisation of the banks? I feel a poll coming on.
3 thoughts on “Ya Empezamos! Caja Castilla La Mancha ‘bailed out’”
The Bank of Spain will guarantee your first €100,000 invested in any entity that goes bust. This was raised from €20.000 back in September when banks were going tits up all over the world. This shouldn’t be an issue in this first case at CCM, but once the third or fourth bank / caja goes under, that’s when the BdE will get tired of bailing out (as happened with the Dunfermline Building Society in Scotland last week) and people will start losing what money they have left.
La Caixa seems to be doing fine, but beware of Caixa Catalunya…
If Caixa Catalunya went, would that mean they’d forget about our mortgage?