Spain has prosecuted more bankers, imposed more restrictions on their “golden parachutes” and seems to have hit failing institutions with higher fines for misleading investors than the United States since the outset of the financial crisis. Although Miguel Blesa, the former president of Caja Madrid, which was later merged into Bankia, was released from prison without charge last week, 89 of his colleagues were awaiting sentence for alleged wrongdoing during their tenures at the helms of nine savings banks. Meanwhile, in the United States the Federal Deposit Insurance Corporation has filed fewer than 50 lawsuits against officers and directors of failed institutions since 2010 and none … [Read more...] about Spain ahead of the US in bankers’ prosecution
About Gonzalo Toca
How EU austerity is falling foul of the law
German magistrates, who questioned and later approved the rescue of Greece in 2011, have this month started to review the constitutionality of the bond-buying programme of the European Central Bank (ECB) at the request of over 35,000 citizens. They allege that it is an instrument to provide struggling countries with easy money from German pockets. According to many experts, this policy helped Spain and Italy avert disastrous defaults by preventing bonds’ interest rates from escalating to unaffordable levels, which was what was happening until the ECB president Mario Draghi threatened to do “whatever it takes” to protect the euro in July and subsequently launched the bond-buying programme … [Read more...] about How EU austerity is falling foul of the law
Turbo-charged exports won’t drive Spain out of the crisis
Spain’s exports share of GDP has jumped from just 23 percent at the outset of 2009 to close to 35 percent in 2013. In March, the country registered its first trade surplus since records began in 1971, becoming the only European Union member whose sales abroad increased during the first quarter. This has unleashed a wave of optimism among foreign media, analysts and the government. “Spain's Crisis Fades as Exports Transform Country”, was the headline of a recent Bloomberg news story. Daniele Antonucci, senior European economist at Morgan Stanley, told CNBC in April that Spanish economic growth will come from outbound sales, a point of view Luis de Guindos, Spain’s minister of economy and … [Read more...] about Turbo-charged exports won’t drive Spain out of the crisis