Spain’s FROB (Fund for orderly bank restructuring) is selling Banco Gallego to Sabadell for one Euro. As a sweetner FROB will also be chucking 245 million euros into the bank as part of the sale.
Banco Gallego was nationalised and is a lender with E4.7bn on it’s books and was 49% owned by NCG Banco, another nationalised bank. Bank Sabadell is Spain’s fifth biggest bank.
Funnily enough we were commenting earlier on the fact that Spain’s problems have been off the burner for a while.