Usa Banks List

Caja Madrid completes the purchase of a Florida bank will inject another 233 million euros

Us banks list / Sunday, August 01, 2010

Caja Madrid has decided to maintain its commitment to the United States despite the doubts generated by the development of City National Bank of Florida. The savings bank has formalized the purchase of 17% which was still in the hands of the founder for $ 190 million and has made an additional contribution of another 100 million. In total, it has spent U.S. $ 306.95 million, 233 million euros.

The box, which acquired the U.S. bank in April 2008 of 618 million, had until the end of 2009 to execute the purchase option for the remaining 17%. But the maturity of this clause coincided with the change in the presidency of the Spanish bank, which in December agreed to the departure of Miguel Blesa and the subsequent appointment of Rodrigo Rato.

The former manager of the International Monetary Fund (IMF) decided in March this year to make a cash contribution amounting to $ 100 million to City National Bank of Florida, about 75.9 million euros at current exchange rates to offset losses the previous two years. Then the five most effective was the option to buy 17% stake in the U.S. entity that was owned by Leonard Abess Jr.

The exercise price of this option-which was recorded under "Financial liabilities at amortized cost" of the consolidated balance sheet from the initial acquisition of the participation of 83% of capital amounted to 189.93 million dollars . 144.20 million euros. This amount had to be added U.S. $ 16.98 million, 12.88 million euros in interest earned under the initial agreement. Following these transactions, Caja Madrid and has 100% of City National Bank of Florida.

In total, the box has invested 306.95 million dollars, 233 million euros, in spite of its difficult financial situation. The agency obtained a net attributable profit of EUR 195 million in the first six months of the year, representing a decrease of 66% compared to 575.6 million the same period last year. This decrease was caused by the obligation to spend 845 million to reserves, according to the box, which has a default rate of 5.39%.

What is not yet known is whether Leonard Abess shared part of the 189.93 million dollars from its employees, as it did when it sold 83% of the bank a little over two years. The banker, friend of Barack Obama, decided to give a bond of 60 million dollars of his own pocket, employees, including cashiers, clerks and all who were on the payroll, a total of 399 - plus another 72 that had retired or no longer working at the bank.

Reinforced Mexico
Rato also decided that what will be the first Spanish savings bank if the establishment closes Institution Protection System / SIP) with Bancaja, La Caja Insular de Canarias, Caixa Laietana and Rioja, Segovia and Avila borrowed the extension of Grupo Su Casita capital. The Mexican mortgage lender asked for a cash injection to its shareholders, among which is Caja Madrid, which has a 40% stake. The Spanish contributed 148.11 million Mexican pesos, 9.07 million euros, to continue their participation.

The leading savings institution in the capital of Su Casita Mortgage since 2005, when it took over 25% of 45 million. A year later purchased another 15% by the same figure. In 2008 agreed to take the remaining 60% which was not controlled by 240 million euros, an operation that eventually thwarted in early 2009 by the financial crisis.

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