Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
18th October 2011
Barclays bid for CAM - looking for other Cajas?
A report in the Daily Telegraph suggests that Barclays is one of 8 banks that has made a first round bid for Caja de Ahorros del Mediterraneo (CAM). The Caja was taken under state ownership, restructured and now is in the process of privatisation. The report goes on to state that Barclays is at early stages of assessing three other Cajas for possible purchase including Novacaixagalicia.
Barclays is understood to have carried out a serious review of its Spanish branch network at the beginning of the year and had been expected to announce significant reductions. In May the BBC reported that the bank might be seeking acquisitions in Spain. It would seem possible, if Barclays is willing and financially able to take the long view, that instead of reducing its network it buys banking assets whilst they are cheap and achieves the economies of scale it needs for success. Purchasing CAM would more than double its penetration, approaching 5% of the Spanish market.
A major problem for regulators and would be purchasers is the opacity of the accounts from many Cajas. Whilst those rescued by the state are probably more transparent it would seem likely that some loss sharing guarantees would be sought by any would be buyers.