• Pin It
  • Pin It

Santander rescues "failing" bank Banco Popular for €1

Jun 07, 2017, 7:15 AM EDT
(Source: Karen Bryan/flickr)
(Source: Karen Bryan/flickr)

Santander has bought its Spanish rival Banco Popular for €1, rescuing the bank from the verge of collapse as its balance sheets took a severe hit after a number of real estate loans turned sour.

According to Santander chairman Ana Botin, the deal, which will cost Santander 7bn euros, has its own merits as it strengthens the bank’s geographical presence in both Spain and Portugal at a time when economic activity is gaining momentum, writes the BBC.

Banco Popular shares have seen 53 percent erosion in price since last week after the ECB, which oversees the largest banks in the eurozone, called it a “failing” venture, notes The Telegraph.

TAGS: Santander
YOU MIGHT ALSO LIKE