Before the end of the year there will be notable bank mergers including t...

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The bad bank is not enough to clean up the financial sector Before the end of the year there will be new bank mergers and some very notable ones, according to financial sector sources. And there will be the big ones: Santander, BBVA and Caixabank are going to be cordially 'forced' by the Government to enter the merger dance no matter what.  From the moment Rajoy's Government refused to allow any bank to fail, the path of banking consolidation has made its way like a cyclone. According to these sources, there is currently a whirlwind of negotiations between all the banking entities, although Popular is going to be spared, for now, since it has chosen to swallow Banco Marenostrum before being awarded a finger-pick entity.  Minister De Guindos , and his Secretary of State for Economy, Jiménez Latorre , push, pressure without regard, and protect this process, since they understand that “a very strong consolidation of the banking sector is necessary”, despite the resistance offered by the entities .

The buffets, full Large entities are the most reluctant. They feel comfortable with the market share they have and do not want problems: they already have enough with the economic crisis and defending the income statement, according to Economy sources. The proof that the oven is very hot is that the large law firms and the large auditing Middle East Mobile Number List  and consulting firms, especially the four important ones, Deloitte, Price, KPMG and Ernst Young , do not stop receiving requests for financial and legal advice regarding what is looms At this time, the “big four” , the four large auditors/consultants, have twice as much work as a year ago, and basically for assignments from the financial sector.



The bad bank is not enough On the other hand, the bad bank , which will group the banks' toxic real estate assets for sale and liquidation , is not enough for banking sanitation. The bad bank will not be operational, whatever Guindos says , before half a year, and the deterioration of bank accounts continues unstoppable. The proof is that the bank has already recognized that it has to face an extraordinary restructuring for another 14,000 million . The outlook for the closing of the banking year is gray to black , with the economy in recession, credit investment on the decline, and bad debts on the rise. If it were not for the rise in commissions, which have grown twice the CPI , practically all banks would be in the red today. The big banks have made closing simulations that announce a drop in profits of 25 to 30%, for the third consecutive year.