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SRB changed tack on Popular wind down due to liquidity crunch
June 7, 2017 / 9:57 AM / 6 months ago

SRB changed tack on Popular wind down due to liquidity crunch

BRUSSELS (Reuters) - The EU’s Single Resolution Board (SRB) switched tactics for the wind-down of Spain’s Banco Popular, preferring its sale to Banco Santander as Popular’s liquidity situation worsened sharply, a senior SRB official said.

At a news conference, SRB Chair Elke Koenig and senior official Dominique Laboureix said the outflow of deposits at Spain’s sixth largest bank was so rapid that the Board had to act overnight to resolve the situation rather than wait, as would be more typical, until a weekend.

SRB plans drawn up months ago for a possible resolution of Popular had not been for such an outright sale, Laboureix said, but had changed strategy because of the liquidity situation.

Reporting by Alastair Macdonald; editing by Robin Emmott

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