Spanish banks may be forced to pay billions to swindled mortgage holders

logo_vi

https://www.rt.com/business/371132-spanish-banks-mortgage-fine/

A ruling by the European Court of Justice may force Spain’s biggest banks to pay back over €4 billion to clients who signed mortgage contracts that prevented them benefiting from falling interest rates.

According to the ruling, the banks will be obliged to reimburse customers for what they lost on mortgages before May 2013, when Spain’s Supreme Court declared them invalid if not presented clearly. The ruling exposes banks such as BBVA, Banco Sabadell, Caixabank, Banco Popular and Liberbank.

Spanish banks introduced the so-called “floor clauses” as a safety net during the financial crisis, and most of them have since removed them. The lenders have prepared €5 billion for compensations.

Most of Spain’s home mortgages are linked to the 12-month euro interbank offered rate or Euribor. The benchmark has fallen, but households are not able to benefit from this.

“Spanish case-law placing a temporal limitation on the effects of the invalidity of ‘floor clauses’ included in mortgage loan contracts in Spain is incompatible with EU law,” the court said.

The ruling saw shares in the Spanish banks plummet. Liberbank lost nearly 13 percent, while Banco Sabadell fell as much as 7.5 percent before recovering to a three percent loss.

Banco Popular slipped as much as 10.5 percent before rebounding to a seven percent decline. The bank is already under pressure after Chairman Angel Ron failed to get rid of €30 billion in toxic assets. Shares in Caixabank was also losing ground.

“This comes as a surprise and at a bad moment for Spanish banks as most of them would have to make extra provisions to pay for this. It will mean pressure on capital generation and profits in the fourth quarter,” Daragh Quinn, an analyst at Keefe Bruyette & Woods told Bloomberg.

———–

banks are the same all over the world..ruthless, inhumane frauds..

“the banks will be obliged to reimburse customers for what they lost on mortgages before May 2013, when Spain’s Supreme Court declared them invalid if not presented clearly. The ruling exposes banks such as BBVA, Banco Sabadell, Caixabank, Banco Popular and Liberbank.”

they dont like that ruling..

“The ruling saw shares in the Spanish banks plummet. Liberbank lost nearly 13 percent, while Banco Sabadell fell as much as 7.5 percent before recovering to a three percent loss.”

heres a tissue..dry your eyes..

401

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~ by seeker401 on December 24, 2016.

5 Responses to “Spanish banks may be forced to pay billions to swindled mortgage holders”

  1. Seems to me all three logos on these banks are part of ONE. They deserve to be doing a perp walk, along with those in their governments and especially the JUSTICE Departments who helped them pull off this scheme.

    MERRY CHRISTMAS SEEKER TO YOU AND YOURS! Hope you have a safe and Wonderful Holiday! Thanks for keeping us all together thru the years when we needed a place to meet. ❤ 🙂

  2. Wells Fargo also…. Monday is a Bank Holiday for most of them in the U.S. Hope they open up on Tuesday, lol….

    http://www.wsj.com/articles/wells-fargo-reaches-deal-with-rescap-over-toxic-mortgages-1482513726

  3. Wonkblog
    Regulators reject Wells Fargo’s plan to prevent another taxpayer bailout of big banks
    https://www.washingtonpost.com/news/wonk/wp/2016/12/13/regulators-reject-wells-fargos-plan-to-prevent-another-taxpayer-bailout-of-big-banks/?utm_term=.cfc5ec75a66f

  4. Deutsche Bank Agrees To Pay $7.2 Billion To Settle Toxic Mortgage Securities Case
    http://www.huffingtonpost.com/entry/deutsche-bank-mortgage-securities-settlement_us_585cde8ee4b0eb586485f3c0

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