Tag Archives: Spanish government

Revealed: The Run on Banks in Catalonia after the Independence Vote was Fomented by Madrid, by Don Quijones

The Spanish government will do whatever it takes to keep milk-cow Catalonia part of Spain. From Don Quijones at wolfstreet.com:

The clandestine role of the Spanish government in a run on deposits that drained €29 billion from Catalan banks.

Just over a year has passed since over two million people in Catalonia voted in a banned referendum to leave Spain. On that day, the separatists were given a brutal lesson in the raw power of state violence. Days later, they were given another harsh lesson, this time in the fickleness of money. Within days of holding the vote, which was brutally suppressed but not prevented by Spanish police, Spain’s north eastern region was forced to watch as one after another of its brand names moved their headquarters, at least on paper, to other parts of Spain.

Among the first companies to up sticks were Catalonia’s two largest banks, Caixabank and Banco Sabadell, which feared being cut off from European Central Bank funding in the event, albeit unlikely, of Catalonian secession. That would have meant no more virtually interest-free loans from the ECB or access to Europe’s repo markets. In other words, a death sentence, as Caixabank’s then president Isidro Faine recently admitted.

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