Spanish Banks Warn of Financial Meltdown if Catalonia Votes for Independence

[marmar]

By Don Quijones, Spain & Mexico, editor at WOLF STREET.


In Spain’s north eastern region of Catalonia, the fear-mongering and doom-saying is reaching a deafening crescendo. If voters return a majority of pro-independence politicians in next Sunday’s regional elections, all manner of economic disaster will befall the region — according to the defenders of Spain’s established political and economic order.

The doomsayers include the Spanish government, the main opposition party, PSOE, Angela Merkel, David Cameron, Barack Obama, John Kerry, the spokesperson of the president of the European Commission, Margaritis Schinas, and just about every business lobby representative in Spain. Some Catalan business leaders have even urged their employees to vote against independence, warning that a yes-vote on Sunday could lead to them losing their jobs — a major threat in a nation with over 20% official unemployment!

Warning of a Crisis

The latest chorus of doom and gloom came from Spain’s two biggest banking associations AEB and CECA, whose members include Banco Santander, BBVA, Banco Popular, and Bankia. They warn that the exclusion of Catalonia from the Eurozone will trigger “serious problems of legal insecurity” for banks based in the region. Those banks include Caixabank and Banc de Sabadell, Spain’s third and fifth largest banks respectively, both of whom are also members of AEB and CECA. ..................(more)

http://wolfstreet.com/2015/09/20/spanish-banks-warn-of-financial-meltdown-if-catalonia-votes-for-independence/

[elleng]

1. Too bad; Sabadell's such a NICE bank! :-)

[dixiegrrrrl]

3. That was marvelous!!!!

[dixiegrrrrl]

2. Looking at the list of people and countries that are against it

would make me vote for it.!

[MisterP]

4. IIRC isn't most of Spain's economy IN Catalonia?

I doubt they'd be able to walk off with the Baleares though, regardless of language connections

Spain's economy is hardly known for its resiliency--all they have is Repsol (maybe they'd get involved in Latin oil once China has a downturn)