Spanish savings banks protest at plan to be converted into banks

Spanish savings banks protest at plan to be converted into banks: "Savings banks in Spain have started to protest at the Government plans to speed up their recapitalisation and conversion into banks.

Deputy Prime Minister, Alfredo Pérez Rubalcaba, said on Friday that the Government would shortly be presenting its plans, so that the savings banks can gain solvency and transparency, and that would include legal reforms if necessary.

Sources close to the Bank of Spain have been reported as taking it as read that the Government will be taking measures to oblige the cajas to become banks, and accept a direct capital injection from a kind of temporary partial nationalisation.

To that the President of the Spanish Confederation of Spanish Savings Banks, and La Caixa, Isidro Fainé, has threatened to resign if reforms are imposed against their wishes"

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