The Spanish government and the Bank of Spain on Sunday began the country’s first bank rescue in this financial crisis, providing up to €9bn in liquidity to Caja Castilla La Mancha, a troubled savings and loans institution, and replacing its directors with central bank nominees.
The Treasury proposed new measures and rules aimed at preventing future financial crisis. The plan covers four broad areas: systemic risk; consumer and investor protection; closing regulatory gaps; and international coordination.
US retail investors poured close to $250bn into bank accounts in the first months of this year, sharply accelerating a flight to safety as they continued to flee volatile stock markets.
Porsche SE turned to new lenders to refinance €10bn of loans to buy Volkswagen AG stock, a sign the economic slump is curbing banks’ ability to extend credit.