Spain’s Economy Minister Solbes says Spanish regional savings bank Caja Catilla La Mancha didn’t sufficiently evaluate risks. The comment comes in the wake of the news that the Bank of Spain will move to bail-out the bank. Solbes says, that despite this hiccup, Spain continues to have an enormously healthy banking system and no other interventions are planned.
The first bank bail-out in Spain has helped ratchet up risk aversion and weigh on the euro and sterling, although both are still trying to grab a foothold in active trade. EUR/USD is at 1.3195 (having posted a 1.3166 low), while cable is up at 1.4160 (having posted a 1.4131 sesssion low)
