Banesto customers in rush to withdraw deposits
They apparently voted with their feet following Tuesday's decision by the Spanish central bank to take control of Banesto, which urgently needs an estimated 500bn pesetas to rebuild a balance sheet badly holed following a disastrous expansion of its loan book.
The bank replaced Banesto's directors with a temporary board consisting of representives from the five biggest Spanish banks and headed by Alfredo Saenz, previously vice-president of Banco Bilbao Vizcaya.
The banking authorities have repeatedly attempted to reassure investors that they have no cause for alarm. On Sunday Mr Saenz, who has reportedly asked the accountancy firms Price Waterhouse and Arthur Andersen for an urgent audit of Banesto and its industrial arm, Corporacion Industrial y Financiera de Banesto, told depositors, clients and employees that there was nothing to worry about.
'We have a promising future ahead of us,' he said, adding that he was confident he would be able to relaunch the bank.
Nevertheless, the withdrawals represent more than 8 per cent of the bank's short-term deposits. According to official sources these amounted to 1,560bn pesetas at the end of September.
The bulk of the money was reclaimed across counters at branches of the bank, although around 23bn pesetas was withdrawn by the clearing organisation which handles interbank transfers.
Shares of Banesto, suspended just before the Bank of Spain's intervention, were last quoted at 1,995 pesetas. Traders said a number of transactions had taken place off-market on Friday at prices between 1,995 and 1,950 pesetas, but others took place at well below these levels.
Apple has been hit by complaints about the 1.1GB download
Much-loved cartoon character returns - without Sir David Jason
Liam Neeson's Downton dreams
Matt Smith is set to join cast of the Jane Austen classic - with a twist
Actress to appear in second series of the hugely popular crime drama
Olympic diver has made his modelling debut for Adidas
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Revealed after 75 years of secrecy: 'Fifi' the glamorous WW2 special agent who tested British spies' resolve
- 5 Have you heard about the film Singapore has banned its people from watching? Well, you have now
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing result either way
Scottish independence: Almost half of No voters have felt 'personally threatened' by the Yes campaign
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
iJobs Money & Business
£70-90,000: Saxton Leigh: Our client a London Market Insurer are seeking a Pro...
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...