Banco Popular has just been bought by Banco Santander for the symbolic sum of just one euro. However, the purchaser also has to cover a 7,900-million-euro hole.

If you have savings in Banco Popular, then they are safe, however, if you are one of the 300,000 shareholders, you’ve lost the lot, thanks to a BCE resolution where bankrupt banks  cannot be bailed out with public money.

Banco Popular, founded 91 years ago, is the latest victim of the banking crisis that began a decade ago, but whose affects are still rippling out. Amazingly, just one year ago the Banco Popular passed a European Central Bank stress test with flying colours.

Another point is that 90% of the Spanish banking sector is now in the hands of just four entities: Santander, BBVA, Caixaban and Bankia. Banco Santander becomes the top dog with 20%.

Santander’s own shares have dropped 1.95% in the meantime giving each share a value of 5.69 euros.

(News: Spain)