6/7/2017, 8:15 AM (Source: TeleTrader)
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Santander buys Banco Popular for €1

Banco Santader bought Banco Popular on Wednesday for one euro in order to prevent its downfall, the Single Resolution Board (SRB) said on Wednesday. The Madrid-based bank was given a private rescue as it had liquidity problems and it was at risk of "failing or likely to fail," according to the European Central Bank. The bank led by Ana Botin will raise €7 billion of capital as part of the transaction. 

"SRB has transferred all shares and capital instruments of Banco Popular Espanol S.A. (Banco Popular) to Banco Santander S.A (Santander). This means that Banco Popular will operate under normal business conditions as a solvent and liquid member of the Santander Group with immediate effect," the statement said.

This way SRB has protected the bank's depositors "and its critical functions to avoid adverse effects on financial stability and the real economy, without using any public funds."

In the past week, Banco Popular's stocks plummeted around 48%.

Breaking the News / DN