Spain: Bankia-BMN merger ruffles banker feathers

The upcoming merger between Spanish public banks Bankia and BMN has unlocked a Pandora’s Box among the country’s financial sector. The merger has caused alarm among several bankers, who have demanded a “transparent and public” auction, and to avoid “finger-picking” the future owners of business that was recently rescued using taxpayer money.

“Using the pretext of maximizing the volume of recovered assets, the process of privatizing these entities is being dragged out, without providing certainty that the future will present a more favorable scenario for the banking sector” said one of the bankers. The situation, in their view, not only severely distorts competition in the banking sector, but is also particularly dangerous given the political instability currently affecting Spain.

“Public banks would make sense if private banks were not fulfilling their duty to finance the economy, but this is not the case” said another. “The problem is that a public bank must carry out its activities under equal footing with private banks, to avoid unfair competition… We must not forget that we’re paying with our taxes to give our competitors wings.”

Full Content: ABC

Want more news? Subscribe to CPI’s free daily newsletterr for more headlines and updates on antitrust developments around the world.