Banco Santander just bought Banco Popular for one euro and probably overpaid. From Simon Black at sovereignman.com:
Here’s the perfect example of how insane our financial system has become.
It was announced yesterday that, after a 24-hour white-knuckled ride, Spanish banking giant Banco Popular had been sold to Banco Santander for the price of just 1 euro.
Note- that’s 1 euro in TOTAL. Not 1 euro per share.
Banco Popular had once been one of Spain’s largest banks.
But just as certain banks tend to do from time to time, Popular sacrificed responsibility and good conduct for quick profits.
They spent years gambling their depositors’ savings away on idiotic, dangerous, pitiful loans. And those bad loans eventually came back to bite them.
The modern business of banking is all about pooling customer deposits together and making various loans and investments with those funds.
Safe, responsible banks make sensible investments.
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