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spanish banking crisis

Satisfactory Essays
The Great Spanish Recession of 2007 had main macroeconomic indicators that led to an unfavorable outcome until today. The effects of such crisis has lasted for more than five years in terms of economic, political and social issues. Spain’s banking system was being contemplated by analysts for being the most compelling and cogent economy amongst various nations in Western Europe. They were considered the most equipped and capable to endure a liquidity crisis since a restrictive banking policy required to retain a high percentage of the reserves. It was clear that this assumption regarding their strong endurance proved wrong when scandals and frauds came on board such as the one in Banco Santander. Banco Santander has faced over the past years several accusations by the Fed and Spanish National Securities Market Commission, facing multiple sanctions and legal disputes resulting in economic crisis and chaotic circumstances that nurtures an ongrowing stain at the bank’s reputation.
Such offence has no political color or social class, meaning it has nothing to do with any political or social acquaintances regarding the case presented. It was only permissible nuances that are provided by the Spanish Penal code itself. However in view of how the law of grace is exercised ,may not be idle to know something more about this legal record, if only for what may come. We can only blame not one, but two chairmans present in the board of directors of Banco Santander of such scam and embezzlement.
Emilio Botin, Executive Chairman of Grupo Santander, has been encompassed in more complex cases of abuse since the outbreak of the subprime mortgage bubble. Botin sold risky convertible bonds to savers that did not meet a suitable risk profile, and no...

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...ers working in senior positions when having criminal records.
The first financial institution to suffer from such outrageous frauds was Banif. Banif was a subsidiary financial institution from Santander Private Banking. The main cause of the hardship was a sell of structured bonds of Lehman Brothers, during the collapse of the U.S. mortgage crisis, over €500 million have also disappeared. Banif charged its customers for their provided services, meaning they are provided by professionals intended to benefit the client by allocating guidance concerning their advocated products. It was discovered that certain information regarding backed securities issued by Lehman Brothers was not entirely accurate. In the best case it is logical to think that the staff of Banif has not acted with due skill and diligence in relation to the services advertised and preached its business.
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