Spain nationalises three more savings banks

 

Spain’s official bank rescue fund has nationalised three more struggling savings banks, valuing them even lower than their directors’ worst expectations of only a few weeks ago, according to the Bank of Spain and private bankers. Miguel Angel Fernández Ordóñez, governor of the Bank of Spain, said on Friday that the Fund for Orderly Bank Restructuring or Frob was spending €4.75bn on recapitalising the banking operations of NovaCaixaGalicia (NCG), CatalunyaCaixa and Unnim. More ON THIS STORY In depth European banks Santander predicts return to big profits Global Insight Italy and Spain Spanish lenders to be seized by Madrid Spain aims for rapid sale of rescued caja The takeover of the three was expected. September 30 was the deadline for banks to find new capital to ensure that their “principal capital” – akin to tier one core capital under international banking rules – reached 10 per cent of risk-weighted assets for lenders without outside investors. Valuations were exceptionally low however, suggesting that the Frob was unimpressed with the assets of the cajas or savings banks concerned, all of which have been affected by the collapse of the Spanish property bubble since 2007. NCG’s banking business was valued at 0.12 times book value, CatalunyaCaixa’s at 0.09, and Unnim at zero, said Mr Fernández Ordóñez and Javier Aríztegui, who heads the Frob executive. That gives the Frob 93 per cent of NCG, 90 per cent of CatalunyaCaixa and 100 per cent of Unnim, they said. Unnim was assigned a nominal value of €1. “When a caja is worse, as when anything is worse, then it’s worth less,” was the blunt comment of Mr Fernández Ordóñez. By contrast, CaixaBank, the new banking arm of Barcelona-based La Caixa, was floated at 0.8 times book value, while Bankia, a merger of Caja Madrid and six other savings banks, managed 0.4 times. Spanish regulators have consistently been more optimistic about the state of the country’s banks than Spanish commercial bankers and foreign analysts, arguing that tight supervision has limited potential losses. Regulators say the Frob is investing a total of €7.55bn, with private investors having put in €5.84bn, most of it through the initial public offerings of Bankia and Banca Cívica in July. Spanish officials insist that they see no immediate need for further recapitalisation of the country’s lenders, although independent analysts say €30bn or more of extra injections may be needed to stabilise the system. “As of September 30, the process of recapitalisation is complete,” said Mr Fernández Ordóñez. In the restructuring of the Spanish banking sector, the number of cajas has been reduced from 45 to 15 through mergers. But successive interventions to rescue failing cajas – first Caja Castilla La Mancha, then CajaSur and most recently Banco Cam (formerly Caja Mediterráneo) – have weakened the case of the authorities. Soon after each rescue, published figures showed loan losses to be much worse than thought. After being seized in July, Cam reported a first-half net loss of €1.14bn and disclosed that its bad loan ratio had risen to 19 per cent of assets, compared with the officially published figure of 9.1 per cent in December. The authorities will now try to sell the cajas controlled by the state, starting with Cam, but are expected to find it difficult to find buyers unless they offer generous “asset protection schemes” to insure the new owners against loan losses.

Spanish sailors to be decorated after rescuing French woman taken hostage by pirates

 

The Defence Minister, Carme Chacón, announced that Spanish forces from the amphibious assault ship, ‘Galicia’, are to be decorated for rescuing a French woman who was taken hostage with her husband by Somali pirates off the coast of Yemen earlier this month. Evelyne Colombo was rescued on September 10 two days after the catamaran she and her husband were sailing had been attacked by pirates. Her husband, Christian Colombo, was murdered and his body thrown into the sea during the pirates’ assault. The Galicia was on patrol with the EU anti-piracy mission Operation Atalanta when it intercepted the skiff which was transporting the 55 year old French woman. Operation Atalanta command ordered the Galicia to open fire on the skiff’s engines and the pirates responded by shooting at the Spanish ship. The pirate skiff capsized after the gun battle, but the hostage was rescued and seven pirates were arrested.

El Hierro still on yellow alert, but no fears of an imminent eruption

 

UME Emergency Military Unit was deployed to El Hierro on Wednesday as the island remained on yellow alert amid fears of a volcanic eruption. The Defence Minister, Carme Chacón, was also due to travel there on Wednesday afternoon to supervise their work, and spoke of the UME’s deployment as a preventive measure to assist emergency services in any evacuation over the increased seismic activity on the island. EFE indicates that there is a 15 percent probability of an imminent eruption, but the island’s government has ruled out any need to evacuate the island. The President of El Hierro’s Cabildo, Alpido Armas, said, ‘That’s not going to happen. We will not need to evacuate 4,000 people. If there is an eruption, it will not be a violent one and the worst that can happen is that a 200 metre mountain emerges’. Fifty three people were evacuated from Frontera due to the seismic activity and it’s understood that they will not be allowed home for the moment. Local schools there were also closed as a precaution because of the risk of landslides. The last volcanic eruption on El Hierro was in 1793, when the Lomo Negro volcano erupted. The last on the Canary Islands was just 40 years ago on La Palma.

Wanted Belgian fugitive arrested in Alhaurín El Grande

 

wanted Belgian fugitive has been arrested in Alhaurín El Grande after a marijuana plantation was discovered at a property in the town. He was found there with a man and a woman, and all three are believed to have been part of an organisation which cultivated the drug for distribution in Europe. The Civil Guard found 55 marijuana plants on the property plus a 9 calibre revolver. One of the group was identified as F.V.B., who was wanted on a warrant for extradition to Belgium to serve a prison sentence of four and a half years for armed robbery. EFE indicates that he took part in an armed hold-up of a goods lorry in Wervik in 2009, where the lorry driver was assaulted with an electric shock weapon and left handcuffed and tied up by the neck.

Franco mass grave found in Jerez

 

It has been a local rumour for many years, that the El Marrufo estate in Jerez de la Frontera had been used to bury hundreds of people shot under Franco. The rumour was well known in nearby Cortes de la Frontera, Jimena de la Frontera and Ubrique. But the investigations made by archaeologists over the summer have confirmed the site, the size of ten football pitches, filled with bones and bullet casings. There were so many casings the archaeologists said they were like seeds, labelled ‘Piritécnica Sevilla 1936’. Jesús Román, one of the archaeologists working at the side says they think it could be ‘one of the largest mass graves away from an official cemetery, and think there are between 300 and 600 bodies present. The El Marrufo Estate was used as a detention, torture and execution centre, dealing with about ten people a day. Women and children as well as men were killed at the site.

Ferronats, a company formed by Spanish construction firm, Ferrovial and British air traffic controllers, Nats, has won 10 of the 13 tenders to run control towers at Spanish airports

 

Ferronats, a company formed by Spanish construction firm, Ferrovial and British air traffic controllers, Nats, has won 10 of the 13 tenders to run control towers at Spanish airports as AENA privatises 49% of the company. It will control Alicante, Valencia, Ibiza, Sabadell, Sevilla, Jerez, Melilla, Cuatro Vientos, Vigo and A Coruña. The remaining three towers on the Canary Islands at Lanzarote, Fuerteventura and La Palma have been awarded to the Sacerco company. AENA estimates savings of 46.6% as a result, with Ferronats bidding 70.4 million, and Sacerco bidding 20 million.

Iberia to launch new low cost airline next week

 

Iberia is planning to launch a new low cost airline next week. The Iberia board is expected to approve the project on Tuesday 4 October, to launch the low cost airline for the company’s short and medium distance services. The new airline is expected to take up 37 of the 69 A-320 aircraft the airline currently has in service. Iberia is now merged with British Airways to create the IAG, the International Airline Group, and the IAG board would have to ratify the decision on Thursday. Iberia has been holding talks with the pilots’ union SEPLA on the conditions for them in the new airline. The airline contends that it needs a structural reorganisation, but the union considers that all the flights should remain under the Iberia brand, and considers maintenance would be cheaper with a single company. An earlier leasing of six planes to Vueling, the budget airline with a 45.85% Iberia shareholding, proved unsuccessful with Iberia passengers complaining they were being put on Vueling flights. Five of those six planes are now back with Iberia. The expected name for the new airline, Iberia Express, was first mentioned back in October 2009.

Belgian couple spot the men who stole their car in Belgium on a Spanish beach

 

Sometimes it a very small world. A Belgian couple who had their car stolen at gunpoint in Belgium some months ago could not believe it when they recognised their attackers when on holiday in Alicante. They saw them on the beach in Guardamar, Alicante last Monday, and made no hesitation in calling the Spanish police. While they were waiting for the police to arrive, the couple found their own car parked nearby, and the owner decided to puncture the tyres to ensure that the thieves could not take it again. After the police arrived a search of the car revealed a simulated pistol. The two men, 47 year old L.J. and 20 year old G.C.D., were taken into custody and it’s now known that there was an international search and capture order in force against them. One of them has served time for serious sexual crimes against children. They have now both been passed to the National Court ahead of being extradited to Belgium.

Major heroin haul in Algeciras

 

The second largest ever haul of heroin in Spanish history has been seized at the port in Algeciras, from a container which was on route to the Ivory Coast from Pakistan. The consignment of heroin was found in three hundred cylinders, each weighing half a kilo, which had been hidden in the cargo of iron oxide powder. The Agencia Tributaria Tax Authority had tracked the container until it arrived at the port, where it was searched on Wednesday. There has been no announcement of any arrests in connection with the find as yet. Spain’s biggest ever haul of heroin was in Sitges, Cataluña, three years ago, where more than 300 kilos were seized.

Ex Ronda Mayor released on bail in corruption case

 

Antonio Marín Lara, the ex Socialist Mayor of Ronda who was amongst seven people arrested on Tuesday in an operation against alleged planning corruption, dubbed ‘Operación Acinipo’, has been released on 150,000 € bail. He was freed on Thursday after questioning by the judge and is charged with perversion of the course of justice, bribery, money laundering, misappropriation of public funds and influence peddling. It’s understood that he has 15 days to pay his bail. Marín Lara left the court in Ronda at around 5pm, five and a half hours after he arrived there under police escort. The six remaining suspects who were arrested on Tuesday have also been released from custody, but all have been charged. Two other people have been questioned at courts in Madrid and Valencia and face similar charges as the ex Mayor. The four Socialist councillors, including the ex-Mayor, among those arrested on Tuesday have now resigned from the PSOE party. The party had previously suspended the four.

UK pressure group set up to help Spanish property victims

 

While there are similar groups already in existence in Spain, this group is the first of its kind in the UK and aims to raise awareness and pressure the UK Government and MEPs into taking action. Many thousands of Britons are believed to have bought property in Spain and through the actions of various levels of Spanish government, property developers and banks, find themselves unable to enjoy the rights to these properties. The Protection of Property Purchased in Europe (POPPIE) is run by husband and wife team Chris and Angela Beattie, who have first hand experience of the issues that surround buying in Spain. In 2004 they spent €150,000 on an off-plan Andalucian villa that was supposed to back onto a golf course, hotel and villa complex. After a building delay of two years, the house was finally built, although the surrounding complex was not. Due to the developer not having planning permission to build their home, they remain unconnected to mains water and electricity supply and are unable to sell the property.

Irish expat charged with prostitutes' murder in Spain

 

The 42-year-old man, who is believed to be Irish, was arrested near his home in the resort of Mijas Costa, near Marbella on Spain's southern coast on Friday. The suspect's girlfriend and her mother were also being held over possible involvement in the serial slayings. Police suspect him of stabbing two prostitutes to death, the first in August and the second a month later. The killer was dubbed the "10 murderer" because both women were killed on the tenth of the month. The first woman, said to be 45 years old and of Argentine origin, was found dead in her apartment in the nearby resort of Calahonda. She had been stabbed at least 15 times and was found by her son with a pillowcase tied round her neck and a cushion over mouth. A month later police discovered the body of a 47-year-old Ecuadorian born woman at her home in San Pedro near Marbella. She had 12 stab wounds to her chest and neck. Both women reportedly advertised their services through local newspapers. Post mortem evidence suggested the two women shared the same killer. Police are investigating whether the suspect could be linked to other unsolved murders across Spain.

Blasts hit ex-home of Franco-era politician

 

A Spanish official says two homemade explosive devices detonated outside the childhood home of Manuel Fraga, the last surviving member of the regime of Gen. Francisco Franco. No one was hurt. An official with the Interior Ministry office in Lugo province in northwest Spain says Monday's blasts broke windows and damaged the facade of the house, which is being turned into a museum by the conservative Popular Party, which Fraga founded. The devices were composed of explosive power of the kind used to make fireworks and butane gas canisters used for camping stoves. The official said there was no immediate claim of responsibility. The official spoke on condition of anonymity in line with ministry rules. Fraga is 88 and has a seat in the Senate.

Spanish police hold suspected 'Irish serial murderer'

 

SPANISH police were last night reported to be holding an Irishman on suspicion of stabbing two women to death in their Costa del Sol homes. Leading Spanish TV station Telecinco described the suspect as Irish. Last night speculation was mounting that detectives were treating him as a suspected serial killer and looking to link him to a series of other unsolved murders across the country. Detectives established a link between the deaths of two women reported to have worked as prostitutes advertising their services through papers. A 45-year-old Spanish woman of Argentine origin was found in her luxury apartment in the Costa del Sol resort of Calahonda on August 11. She had been stabbed 15 times. A month later, police discovered the body of a 47-year-old Ecuador-born woman at her rented home near Marbella. She had bled to death after being stabbed up to 12 times in her chest and neck. Secrecy Due to the investigating judge granting a secrecy order on the case, spokesmen from Spain's National Police and Civil Guard were unable to confirm the name and nationality of the suspect or discuss local media reports he had been carrying false ID when he was arrested. A spokesman for the National Police said: "I've seen the reports suggesting the suspect is Irish and I've also seen other newspaper reports he's from central Europe, but I cannot give you any details about the man who is in custody." His Moroccan girlfriend and her mother were also being held. The man being held in custody was arrested on Friday at a gym near his home in Riviera del Sol near Fuengirola. The block where he was arrested is just a stone's throw from the home of missing Amy Fitzpatrick's mum, Audrey. Police are believed to have arrested him after stolen credit cards belonging to one of the victims was used to withdraw cash from ATMs in the area.

Spain 'a Top Choice' For Those Thinking Of Moving Abroad

 

Spain has been named among the top five destinations that people would consider moving to if they were going to leave the UK, new research has found. A survey conducted by Post Office International Payments revealed that the European nation, which was the fourth most popular location named in the poll, was a possible choice for ten per cent of those questioned. The firm also pointed out that it was the highest-placed nation where English is not the first language. One of the top reasons given for buying a property in Spain or elsewhere in the world is the chance to have a better quality of life, while other reasons to move included warmer weather, discovering a new culture and the adventure of emigrating. Mortgage provider Conti published figures earlier this month showing that it has received seven per cent more enquiries about relocating to Spain so far in 2011 than last year. Overall, the country accounts for 31 per cent of all queries handled by the organisation, with only France garnering more interest.

Bank of Spain reassures on Spanish banks

 

A spokesperson for Bank of Spain reiterated that Spanish banks do not need more recapitalisation than was established in the Financial System Reform Plan that was approved in February and is being realised on schedule, as reported by El Pais. This affirmation was made after yesterday's Financial Times report that 16 European entities need to recapitalise. Among them were seven Spanish banks: Banco Popular, Bankinter, Caixa Galicia, BFA-Bankia, Banca Cívica, Caixa Ontinyent, Banco Sabadell. This morning, Expansion reported that Banco Sabadell, Banco Popular, and Bankinter ruled out the need for capital.

 

 

Germans don't like the British, and the British are the majority in Benidorm

 

A spokesman said part of the problem was that the Germans don't like the British, and the British are the majority in Benidorm hotelsPhoto EFE Air Berlin has cancelled five direct flights from El Altet airport as the company puts a tough cost cutting scheme into operation with the goal of saving 200 million €. The plan will leave 18 planes on the ground, and Alicante is reportedly hard hit because of the high seasonality of traffic at El Altet. In addition numbers show a marked fall in German traffic using the airport this August compared to last, down 22% with 78,988 German tourists. A spokesman for the airline is reported by Europa Press of having commented that part of the problem is that the Germans don’t like the British, and the Brits are the majority in Benidorm hotels. The town’s hoteliers have described that as ‘an urban legend’. The cutbacks come into effect in November and will see the number of direct destinations from Alicante reduced by 45%. The lost destinations are Frankfort, Munich, Nuremburg, Stuttgart and Zurich. The airlines connections to Berlin, Hamburg and Palma remain. The Air Berlin decision follows the earlier announcement from Ryanair reducing flights from Alicante, and dispels the opinion voiced by the PP at the time that Air Berlin could take up those vacant slots. Air Berlin is one of five airlines which use El Altet airport currently.

Costa del Sol’s oldest magazine shuts its doors

 

The Costa del Sol’s oldest magazine is reported to have closed down after running its final edition on Friday. The Friday-Ad – which continues to run a UK operation boasting over 1 million readers a week – had produced a Costa del Sol edition out of its Gibraltar offices since 1975. The reason behind the decision to close remains unclear. When the Olive Press attempted to contact the publication’s office, the number failed to connect. However, a member of staff in the UK office confirmed that it was their understanding that the Costa del Sol edition had closed. “As far as I am aware that was the plan (to close on Friday) but you will need to call back in 10 minutes to speak to someone who can confirm that,” she said.

Barcelona's last bullfight marks end of an era in Spain

 

When Spanish bullfighter Serafin Marin plunges his sword into the back of a bull's neck in Barcelona on Sunday, he will be marking the end of an era. The bull will not only be the last of six killed in the bullfight, but the last-ever to be killed in Barcelona's Monumental bullring, which is nearly a century old. The closure of the Monumental - in keeping with a bullfighting ban in the north-eastern region of Catalonia - reflects the decline of bullfighting in Spain, though fans of the country's 'national fiesta' vow to fight on. 'We have lost a battle, but not the war,' Marin told the daily El Mundo. But animal rights campaigner Aida Gascon said, 'Now that we have achieved (the end of bullfights) in Catalonia, we shall try to finish with them in the rest of Spain.' Catalonia, a wealthy region of 7.5 million people, has spearheaded the campaign against bullfights, or 'corridas,' in a country where animal rights activism is on the rise. The Catalan capital of Barcelona declared itself an 'anti-bullfight' city in 2004. Dozens of other municipalities followed suit, and finally in July 2010 the regional parliament outlawed bullfights from January 1, 2012. The Canary Islands had already done so in 1991, as part of a more general animal protection law, but that decision had gone largely unnoticed. The Catalan opposition to bullfights is explained not only by animal rights activism, but also by Catalan nationalism, many of whose representatives see 'corridas' as an expression of Spanishness. The region with separatist currents 'wants to eliminate everything that represents Spain,' Marin said. Bullfighting remains an important industry in Spain with an annual turnover of more than 2.5 billion euros (3.5 billion dollars), contributing to 0.25 per cent of gross domestic product. It provides direct employment to 200,000 people, including bullfighters, or 'toreros,' bull breeders, managers and others. Yet gradually the spectacle that once inspired artists and writers such as Pablo Picasso and Ernest Hemingway is losing its appeal. Only 37 per cent of Spaniards are interested in bullfights, while 60 per cent dislike them, according to a 2010 poll. 'Corridas' are least popular among young people. Animal rights campaigners see the event, in which darts are stuck into the back of the animal's neck before the 'torero' kills it with his sword, as torture. Some observers attribute the decline also to other causes, ranging from Spain's economic crisis to an alleged deterioration of the race of the Iberian 'brave bull.' Not only are bulls' horns 'shaved' to make them less dangerous, but they are also losing their fighting spirit, some bullfighting commentators complain. Another important reason for the decline of 'corridas' is their image as an old-fashioned form of entertainment. 'Young people do not choose an anachronistic spectacle,' anti-bullfight campaigner Helena Escoda said. Even Catalonia, however, has not outlawed other bull spectacles, such as bull runs. Some Spanish regions have come out in defence of the 'corrida,' describing it as a part of their cultural heritage. Prime Minister Jose Luis Rodriguez Zapatero's government placed bullfights under the responsibility of the Culture Ministry, instead of the Interior Ministry. The opposition conservative People's Party, which is expected to win the November 20 parliamentary elections, has taken legal action against the Catalan bullfighting ban at the Constitutional Court. Catalan bullfighting enthusiasts have also collected 300,000 signatures in defence of the fiesta. Yet it is far from certain that such initiatives will stop what many see as an inevitable social development. Catalan bullfighters, in the meantime, are planning to face the bull elsewhere in Spain or in the south of France.

Spain fears pain as Ratón the killer bull prepares to enter ring for last time

Ratón the bull at a festival in Sueca, Spain. Photograph: Alberto Saiz/AP

It is the end of a long career, deemed venerable by those who admire Spanish fighting bulls.

In the early hours of Sunday morning, the half-tonne 11-year-old killer bull known as Ratón, or Mouse, will feel a bullring's sand under his hooves and sniff the scent of commingled human adrenaline and fear for the last time.

Those who pay their €2.50 (£2.20) in Canals, eastern Spain, will witness the final chapter of a life spent chasing, and occasionally goring, people. Fans are expected to arrive from around the country.

Many will be secretly hoping Ratón, who has killed two and reportedly gored five others in his career, will draw blood at his valedictory outing in the small town near Valencia. A fiesta poster promises "a show with the presence of the famous Ratón" starting at 12.30am. It does not mention that Ratón killed a spectator in nearby Xátiva last month and another man in 2008.

Canals mayor, Ricardo Cardona, claims to have been unaware of Ratón's bloody past when hiring him. He has asked the bull's owner, Gregorio de Jesús, to prevent members of the public coming face to face with the beast.

Four professional recortadores, or bull-taunters, will instead dodge in front of him in the bullring, encouraging him to chase them over obstacles for up to half an hour.

"It is when someone jumps in spontaneously that things inevitably happen," De Jesús said this month.

Police and security staff will try to prevent enthusiastic amateurs jumping into the ring with Spain's most infamous bull.

The future of Ratón, who is past retirement age, remains uncertain. De Jesús wants to clone the bull but is waiting to hear if he will receive local government funds to pay for it.

 

 

Spain’s central bank reported this week that things were getting worse for that country’s banks

 

Spain’s central bank reported this week that things were getting worse for that country’s banks — but not because they held a lot of Greek debt or bonds issued by other troubled European economies. The problem, instead, is the same old one. With Spain’s economy weak and home prices falling, bad loans are growing. And the central bank thinks things are getting worse. In a surprisingly frank presentation to investors in London on Tuesday, José María Roldán, the Bank of Spain’s director general of banking regulation, said that Spanish land prices had fallen about 30 percent from the 2007 peak, adjusted for inflation, and that home prices were off about 22 percent. “In both cases, we expect further corrections in the years to come,” he said. For land prices, he said, the bank’s “baseline scenario” was that prices would fall to little more than half of the peak level. The “adverse scenario” indicated that the decline could be significantly worse. That was a significant change from a presentation he made in February. Then, with home prices down about 18 percent from the peak, he argued that the decline was similar to past cyclical downturns and that prices were likely to begin rising soon. Remarkably enough, collapsing home prices have not left Spanish banks holding large amounts of bad mortgage loans, thanks largely to the fact the Spanish mortgage market operated during the boom in far different ways than the American market. But if lending to home buyers was conducted in a far more prudent manner than it was in the United States, lending to real estate developers and construction companies was, if anything, more irresponsible. The higher land prices went, the more eager the banks were to push out loans. The story of how Spain’s banks got into the mess — and the way its mess differs from that of American banks — show that it is impossible for banks to walk away from a collapsing bubble in real estate. It also shows that the structure of mortgage markets can make a major difference in how a collapse plays out. The figures released by the central bank this week showed that by the middle of this year, 17 percent of Spanish bank loans to construction companies and real estate developers were troubled — or “doubtful,” the term favored by the central bank. That figure has been rising rapidly, reflecting the deterioration in real estate values. When the financial crisis first broke out, in 2008 and 2009, it appeared that Spanish banks were in a better position than most, in part because of regulation that had kept the big banks from making some of the mistakes others made. But it turned out that smaller Spanish savings banks were heavily exposed to a real estate market that had outpaced even the United States’ market for a time during the first decade of this century. That market continued to rise after the American housing market stopped climbing. The Bank of Spain has created a program to force mergers of the smaller banks and to bring in better management. It has put about 11 billion euros into the banks to recapitalize them, and is putting in another 15 billion euros in a process that is supposed to be completed by the end of this month, said Antonio Garcia Pascual, the chief Southern European economist for Barclays Capital. But, he added, “our estimate is that the overall number needed is closer to 50 billion euros.” The banks are bleeding from loans secured by raw real estate, and from loans for construction. The pain is made worse because such lending soared during the property boom. It is those loans that are now devastating bank balance sheets, as developers who borrowed to build offices, stores and neighborhoods saw demand dry up and now cannot pay the banks back. Other corporate loans are also showing weakness, as would be expected when unemployment is above 20 percent and not expected to improve for at least two years, but less than 5 percent of those loans are said to be doubtful. There are also signs of trouble in car loans and other loans to individuals.

Elizabeth Taylor's designer clothes to be auctioned

 

Designer clothes owned by Hollywood legend and fashion icon Elizabeth Taylor, including haute couture by Chanel, Yves St. Laurent and Dior, will be sold at auction in New York, Christie's said on Wednesday. The silk chiffon dress that the Academy Award winning actress wore for her first wedding to actor Richard Burton will be among the nearly 400 times included in the four-day series of sales in December. "One of the many great treasures within Elizabeth Taylor's vast collection is her extraordinarily well-preserved wardrobe," said Marc Porter, chairman and president of Christie's Americas. "The stunning outfits she wore to galas, award ceremonies, AIDS benefits and even her own weddings to Richard Burton are all here, lovingly maintained along with the handbags, shoes, hats and other accessories that completed her superstar looks," he added in a statement. The December 13-16 sales, which span over 50 years of fashion, will follow a global three-month tour which will also includes Taylor's renowned jewelry, fine art and memorabilia. It will be the second in a series of auctions from the estate of the legendary film star who died in March. Nearly 6,000 people viewed the collection this month when it was displayed in Moscow. Stops in Los Angeles, London, Dubai, Geneva, Paris, Hong Kong and New York will follow. Meredith Etherington-Smith, Christie's' curator for the fashion auction, described the items as "a highly personal collection." "This is not a red carpet wardrobe edited by stylists but a treasure trove of looks chosen by the last of the great movie stars. Many of the pieces in this lifetime collection were couture, custom made for Ms. Taylor by designers who became her close friends, including Valentino Garavani, Gianni Versace and Gianfranco Ferre." Some 68 of Taylor's most iconic looks will be auctioned at a gala evening sale on December 14, followed by hundreds of other fashion items and accessories in other sales. Highlights will include a Versace beaded evening jacket arrayed with portraits of the actress in some of her famous movie roles, which is estimated to sell for up to $20,000. The sunflower yellow dress by Hollywood designer Irene Sharaff that Taylor wore to her 1964 wedding to Burton has an estimated sale price of $40,000 to $60,000. Taylor's estate was valued at up to $1 billion when she died of congestive heart failure at age 79. A portion of the proceeds from the exhibitions, events and publications related to the auction will be donated to The Elizabeth Taylor AIDS Foundation, which the actress founded in 1991. The series of Taylor sales are individually devoted to jewelry, haute couture, fashion and accessories, decorative arts and memorabilia from Taylor's Bel Air home, and Impressionist and modern art.

Ernest Hemingway’s final visits to Spain are remembered at a new exhibition in Rioja.

Ernest Hemingway’s final visits to Spain are remembered at a new exhibition in Rioja.

Hosted and created by Bodegas Paternina at its Conde de los Andes winery in Ollauri, the exhibition entitled “Tinta, Sangre y Vino” – “Ink, Blood and Wine” – celebrates the writer’s visit to the winery 55 years ago and marks 50 years since his death.

However, the exhibition does not focus solely on Hemingway’s visit to Paternina in 1956.

Making use of never-before-seen photographs and working with the Hemingway family, Paternina’s exhibition is more of a look at Hemingway’s association with Spain in the final years of his life.

Greater attention is given to his passions for wine in general, bullfighting, writing, fiestas and good company. Carlos Eguizábal, CEO of Paternina, spoke to the drinks business at the opening ceremony in Ollauri.

“We felt the exhibition was appropriate because of his relationship with wine and Rioja in general,” he said.

“There is a connection between wine, culture, bullfighting and literature which Rioja encapsulates and which underpinned his love of Rioja and Paternina. It’s a celebration of his life.”

Hemingway’s daughter-in-law Valerie and grandson John were also at the opening of the exhibition and Valerie tolddb about the author and his connections with wine.

“He was always looking for what was good,” she said. “Not always the best but what he could enjoy. He didn’t follow trends or labels or vintages but wine was part of the fabric of his life.”

As for his reputation as a heavy drinker (and at worst a drunk), Valerie countered: “He was very disciplined with his drinking and never drank because he ‘needed’ the drink. He would also never write after drinking, saying: ‘Anything you write after drinking is worthless’.”

Much of the exhibition centres on Hemingway’s return to the bullfights between 1956 and 1960.

His visit to Paternina in 1956 coincided with the coming of age of Antonio Ordóñez son of the bullfighter Cayetano Ordóñez also a friend of Hemingway and model for the character Pedro Romero in The Sun also Rises.

Antonio was on a tour of the Basque country and Rioja in 1956 and Hemingway followed his fights in cities such as Bilbao, Pamplona, Haro, Logroño and Calahorra.

It was on this trip that the two of them visited Paternina and a great many of the unseen photographs in the exhibition show the pair being shown around the cellars – and tasting wine.

Hemingway would follow Antonio on subsequent returns to Spain between 1956 and 1960.

These, along with the mano a mano contest between Antonio and his great rival and brother-in-law Luis Miguel Dominguín in 1959, formed the basis of Hemingway’s last series of articles for Life magazine, The Dangerous Summer.

To help commemorate the event, Paternina’s winemaker Carlos Estecha has designed a special edition label for the 2006 Conde de los Andes reserva.

The exhibition runs from Tuesday to Sunday – with more limited opening times on Sunday – until 15 April 2012. Admission with a tasting is €3, €2 for over 65s and under 18s and free for under 14s.

Halle Berry taken to hospital after breaking her foot on set of new movie

 

Halle Berry broke her foot while in Spain today. The actress, who is in the country filming scenes for Cloud Atlas, injured herself after a simple misstep on property where she is staying, according to TMZ. She is understood to have been taken to hospital where her foot was put into a cast and she later left in a wheelchair. The accident has put her film bosses in a spin however, with sources saying they plan to shoot around her injury by shooting her from the waist up and using a stunt double. Berry is in Spain after shooting scenes for the movie in Glasgow, where she was spotted running around in 70s gear for an action scene. She is among an ensemble cast starring in the big-screen adaptation of David Mitchell's novel Cloud Atlas - a collection of six different stories set between the 19th century to the post-apocalyptic future. She plays journalist Luisa Rey who investigates reports of corruption and murder at a nuclear power plant. A host of A-listers are taking part, including Tom Hanks, Susan Sarandon, Hugo Weaving and Hugh Grant. This month Berry has also spent time in Majorca with daughter Nahla and her boyfriend Olivier Martinez as part of her European stay.

Spain Examines Long Hidden Swiss Account

 

Emilio Botín is a billionaire Spanish banker renowned for running a tight ship. He asks that his top credit officers at Santander — one of Europe’s largest banks — make a trek to his vacation home each summer to report on loan exposures. And he queries the head of his charitable foundation, euro for euro, on its smallest donations. Enlarge This Image Daniel Ochoa De Olza/Associated Press A Spanish court is investigating whether the family of Emilio Botín, the head of Banco Santander, paid too little taxes. Add to Portfolio HSBC Holdings PLC Barclays PLC Go to your Portfolio » Enlarge This Image Nacho Cubero/Reuters Emilio Botín is head of Banco Santander, which is based in Madrid. Readers’ Comments Share your thoughts. Post a Comment » Read All Comments (30) » Yet, there is one not-so-small matter that Mr. Botín (pronounced bo-TEEN) has failed to keep tabs on: a Swiss bank account secretly opened long ago by his father that grew to such a size that when Spanish authorities discovered its existence last year, Mr. Botín and other family members paid 200 million euros (about $273 million currently) in taxes to avoid tax evasion charges. At the request of tax fraud inspectors, a Spanish national court is investigating whether the payment is enough, given the amount that was stashed abroad; tax experts in Spain say that the account could reach two billion euros. The court has also said that officials need more time to sift through the blizzard of documents that the family submitted and will consider whether a criminal charge of document fraud should be brought. A lawyer for the Botíns, Jesús Remón, said the family was cooperating with the investigation and was “fully in compliance with its tax obligations following their voluntary filing” last year. He added that no family member had been charged with wrongdoing. Mr. Botín’s tax problems come as debate intensifies over whether struggling governments should demand more tax revenue from the rich. On Monday, President Obama called to end some tax breaks for the wealthiest taxpayers in the United States. Last Friday, the Spanish government reintroduced a wealth tax that it had abolished three years earlier, hoping to collect an estimated 1.08 billion euros from taxpayers with more than 700,000 euros in declared assets. Spain’s wealthiest have so far not publicly endorsed calls for higher taxes, and Mr. Botín on Friday told reporters that “it seems to me very bad to reintroduce” the wealth tax. More so than in other European countries, where bankers are largely anonymous figures, Mr. Botín holds sway in Spain. Although he avoids social events and his public utterances are few, his influence is seen as wide-ranging. And he has been able to retain control of Santander despite his family’s controlling just 2 percent of its shares. Neither the judiciary nor the family has provided details about how much money the Swiss bank account contained or how the amount grew over time. Nor would Mr. Remón, the lawyer, comment on whether Mr. Botín had been aware of the account. What is known is that Mr. Botín’s father, also called Emilio, left Spain with part of his wealth in late 1936, after the start of the Spanish Civil War, fearing, like many other Spaniards, what might come. The elder Mr. Botín spent a few months in London before moving to Basel, Switzerland, and eventually returning to Spain to resume leadership of the bank that he had run since 1933. But while he returned to Spain, the money he salted away in Switzerland did not. The senior Botín died in 1993. Last year, the French government passed on to Spain data that it had obtained from Hervé Falciani, a former employee in HSBC’s Swiss subsidiary, naming almost 600 Spanish holders of secret bank accounts. Among those was one belonging to the estate of Mr. Botín’s father. In his opening summary, the judge in charge of the case, Fernando Andreu, highlighted “the complexity of the hereditary structures” of trusts, foundations and other companies set up to oversee the account. The closest he came to explaining what was in the account was to say that it also included a 12 percent stake in Bankinter, a midsize bank in which Jaime Botín, Emilio’s brother, is a leading shareholder. That holding, at current stock market value, would be worth about $310 million.

Bullfighting to end in Spain's Catalonia,

 

Bullfighting fans will shout "Ole" for the last time in Barcelona's Monumental bullring on Sunday before a ban on the sport takes effect across the northeastern Spanish region of Catalonia. The regional legislature banned the centuries-old tradition -- which pits a sword-wielding matador in a skin-tight shiny suit and red cape against an enraged bull -- last year after Catalans signed a petition against it. The bullfighting industry is still convinced it has a chance to overturn the ban and bring back the "toros" next season to Catalonia, the only mainland region in Spain that has blocked the sport -- or the art as its fans see it. "I think the politicians will think twice about the ban and bullfighting will live on. And thank God because Catalonia has plenty of serious bullfighting fans and in a democratic country they should be able to go to a bullfight," said Moises Fraile, 64, owner of El Pilar, the breeder supplying bulls for Sunday's spectacle. Some 20,000 spectators are expected to fill a sold-out Monumental -- the only bullring still operating in Catalonia -- for Sunday's blockbuster corrida starring celebrated Madrid "torero" Jose Tomas. Tomas retired in 2002, but came back in 2007 at a bullfight in Monumental, his favorite ring. Since then he has made sporadic appearances and is the only bullfighter who can still sell out Monumental.

Spanish schools hit by strike over staffing cuts

 

Thousands of public school teachers went on strike Tuesday in Madrid to protest staff cuts as anger over government austerity measures spread to Spain's education system. The work stoppage in some 300 schools is to last at least two days and perhaps three, and teachers elsewhere in the country also plan strikes or protests this month against budget cuts. Teachers say education should be spared as Spain tightens its belt to resurrect its economy, allay fears it might need an international bailout and reinvent itself for the future with a modern, educated workforce after the collapse of an economy fueled largely by a real estate bubble. "We are on strike to improve state education. It is not true that we are on strike because we have to work more. The timetable is the same as we had last year. What we want is better conditions for public teaching," Pilar Hortal, a 57-year-old English teacher standing at a picket line in Madrid, told The Associated Press. The teachers' branch of the UGT union said 65 percent of the teachers in Madrid were honoring the strike and up to 85 percent in outlying areas. The Madrid regional government put the overall figure much lower, about 43 percent. Education in Spain is in fact largely run by regional governments, many of which are debt-laden. The one in Madrid hopes to save €80 million ($110 million) with staffing cuts. It and the others making budget cuts are mostly run by the conservative Popular Party. The central government of Socialist Prime Minister Jose Luis Rodriguez Zapatero, which has enacted austerity measures of its own, opposes education cuts. The strike's immediate trigger was an order from the Madrid regional government forcing teachers to give two extra hours of classwork per week. Their actual work week remains unchanged at 37.5 hours. Unions say the extra classroom hours mean several thousand backup or temporary teachers will not be hired this year. Teachers will have less time to prepare classes or meet with students and parents, and can't use auxiliary colleagues to break big classes up into smaller groups. Unions say some teachers are being assigned to teach subjects they know nothing about. Spain, meanwhile, easily raised €4.45 billion ($6 billion) in an auction of short-term debt, although higher borrowing rates reflected investor worries over the impact of Europe's debt crisis. The Treasury had wanted to sell between €3.5 billion and €4.5 billion in the auction. It sold €3.59 billion in 12-month bills at an average interest rate of 3.59 percent, up from 3.34 percent at the Aug. 16 auction. Demand outstripped the amount actually sold by a ratio of 2.8. Spain also sold €870 million ($1.2 million) in 18-month bills at an average yield of 3.8 percent, compared with 3.59 percent on Aug. 16. The oversubscription rate was 2.7.

Spanish custom officers seize cigarette packs

 

SPANISH customs officers in La Linea de la Concepción seized 2,848 packets of cigarettes last weekend, according to press reports. Contraband tobacco was found hidden in three vehicles crossing the border into Spain from Gibraltar. In a fourth case, the bag of a person walking by the Levante area was searched and was found to be carrying 1,000 packets of contraband tobacco.

Brits arrested for drug trafficking on the Baleares

 

 

The Organised Crime Squad ECO of the Guardia Civil based on Mallorca completed the second part of an operation against drug trafficking on Sunday. The first part of the operation had been started at the end of August. At that time ten Britons were arrested and on Sunday the ECO agents picked up another ten youngsters of the same nationality. Judicial sources say that seven of the ten were sent to prison in Eivissa, on remand, while two were granted bail of 10,000 € and one was released without bail. Reporting restrictions have been imposed in the case. And in a separate case on Saturday the Guardia Civil have arrested a British man in Sant Antoni, Ibiza found to have 300 ecstasy pills hidden in his hotel room. The investigation is being handled by the Judicial Police of the Guardia Civil. We also have more details about a Guardia Civil drugs raid last Wednesday, also in Sant Antoni, when four homes were searched in the second phase of the Rula operation. 5 kilos of cocaine was recovered along with 5,000 ecstasy pills, and ten more arrests were made. Diario Ibiza reports that all those arrested are men, nearly all of them young and also British, although there are some Irish in the group. Judge Carmen Martín in Instruction Court 3 in Ibiza took their statements on Sunday.

British man breaks his hip in new 'balconing' incident

 

British man has broken his hip in yet another case of ‘balconing’ on the Baleares. The 29 year old, who was said to be very drunk, fell from the first floor of his hotel when trying to cross to the neighbouring balcony. It was a fall of some 3 metres and happened in Avenida Isidor Macabich in Sant Antoni. He was taken to the Can Misses Hospital where he is expected to stay for a few days. The Guardia Civil is in charge of the investigation, although the Local Police also attended the incident.

Ibiza fire brought under control

 

Some 1,200 people were evacuated overnight as their homes in the Roca Llisa urbanisation in the town of Santa Eulàra des Riu were threatened by the fire. The fire was declared at 8pm on Sunday afternoon in Cala Llonga, but given the size of the blaze in the early hours of Monday, 16 men from the Emergency Military Units UME were scrambled to the scene to reinforce the fire crews already working. They arrived on the island overnight on two helicopters. 160 fire fighters brought the fire under control on Monday morning, and there are no reports of any injuries. A total of 115 hectares were affected. In a separate incident a fire at Marratxí on Mallorca has affected some 5 hectares and is now also under control.

Spanish banks hit by spike in bad loans

 

Bad loans from Spanish banks, a major source of concern to financial markets, rose in July to the highest level in 16 years at nearly seven per cent, the Bank of Spain said on Monday. Bank loans whose recovery is in doubt amounted to 124.7 billion euros ($A166.5 billion), or 6.94 per cent of total assets, in July, the central bank said in a report - the highest ratio since February 1995. That compares to a revised bad loan ratio in June of 6.69 per cent. The central bank had previously said the bad loan ratio was 6.42 per cent that month. Advertisement: Story continues below Bad loans at Spanish lenders, especially its regional savings banks which account for half of all lending, have risen steadily since the collapse of the property sector at the end of 2008. The bad loan ratio at Spanish banks stood at 3.37 per cent at the end of 2008. Earlier this month Spain's struggling Caja Mediterraneo, under state control since July, reported a bad loan ratio of 19 per cent, fuelling concerns about the state of balance sheets across the banking sector. The financial health of Spanish banks is at the heart of market fears that Spain could follow the example of Ireland, Greece and Portugal in seeking a bailout from the European Union and the International Monetary Fund. The government and Bank of Spain have forced a wave of consolidation in the sector this year and are requiring banks to quickly increase the proportion of core capital they hold to above international norms. In July, Moody's threatened to lower the ratings of four Spanish banks, including the euro zone's largest, Santander, as well as the country's confederation of savings banks. The three other banks concerned are BBVA, CaixaBank and La Caixa.

Marbella Club Hotel, Golf Resort & Spa: Marbella, Spain hotel:

 

Located on the Southern Spanish Costa del Sol, in the heart of the 'Golden Mile' only 5 minutes to Old Town Marbella and Puerto Banús, with 320 days of sunshine and a mild year round average temperature of 21ºC). Open year round, the renowned Marbella Club Hotel, was once the private residence of Prince Alfonso von Hohenlohe. The 121 luxury bedrooms and suites, spread over the beach front resort, harmonize with 14 Andalusian-Style villas throughout 42,000 square meters (452,083 sq. ft.) of lush subtropical gardens. Each guest room is decorated with the finest fabrics and Mediterranean interior design, reflecting the surrounding elements and has furnished balcony / terrace and spacious luxurious bathrooms with separate shower and bath. The 14 charming villas are in the unmistakable style of the Hotel, faithful replicas of traditional Andalucían architecture, blending harmoniously with their surroundings, and are ideal for families and guests seeking to enjoy more space and privacy. The 2, 3 or 5 bedroom villas have their own private garden and heated pool, providing guests with both comfort and privacy during their stay. Both of the 2 outdoor heated swimming pools, one with seawater invite you to relax in the surrounding gardens or to enjoy the views of the Mediterranean through the palm trees of the famous beach club.

Housing Market Woes Even Hit Celebs

 

Even celebrities are having a hard time selling their mega-mansions. More on DIS Fan Cam: The Next Sports Cash Machine?Jay Rasulo, Senior Executive Vice President And Chief Financial Officer, The Walt Disney Company, To Speak At The Goldman Sachs 20th Annual Communacopia ConferenceBond Funds See Huge Spike in Inflows Market Activity The Walt Disney Co| DIS Mommy-to-be Hillary Duff has put her first mansion that she purchased while starring in Disney's Lizzie McGuire up for sale with an asking price of $6.25 million. But according to The Real Estalker, Duff also attempted to sell the estate last year, listing for $7 million last time around. Real estate records reveal Duff bought the 9,277 square-foot house in Toluca Lake, Calif., in March 2004 for $3.5 million. Mark Wahlberg, a.k.a. Marky Mark, also recently re-listed his Beverly Hills estate with a $2 million price cut. Wahlberg originally listed the property in 2008 for $15.9 million. The 1.41-acre home is now listed for $13.9 million. The executive producer of Entourage purchased the mansion in 2001 for just $5 million, later remodeling it. Earlier in the summer, Christina Aguilera reduced the price on her home in the Hollywood Hills to $5.5 million from $8 million, while Jodi Foster's Beverly Hills mansion was brought down to $8.9 million from $10 million. The housing market continues to wobble with few consumers taking advantage of record-low mortgage rates. Sales of newly built homes are expected to be at their worst levels for decades this year, while sales of previously occupied homes are on pace for their poorest showing in nearly 15 years

Spain finance chief admits odd quirk in wealth tax

 

One aspect of a plan to restore wealth tax in Spain makes no sense but there's nothing the government can do about it, the finance minister said Saturday. Elena Salgado spoke from Poland where she was attending a meeting of euro zone counterparts. The tax stems from the central, Socialist government but is collected by regional administrations. It was suspended in 2008 to stimulate growth as the global economic crisis started to bite in Spain. But the Madrid government has kept compensating regional governments for the lost revenue. Now, regions stand to get the money twice: once from high-earning taxpayers under a decree passed Friday and again from the central government because the compensation must continue under a separate law that has a higher status than a decree. Salgado said "this does not seem reasonable" but there's no way around it. "With a decree, there is nothing you can do to avoid it," she said. Her comments were the latest in a sea of confusing government statements about the wealth tax, which is levy on a person's net worth: assets minus debts. The flip-flops concerned the wealth level at which it will kick in and how much revenue it will raise. In the end, if passed by Parliament next week, the levy will apply to taxpayers' net worth above euro700,000 ($963,000), or an estimated 160,000 people, and raise euro2 billion in revenue. It is temporary, and will be in effect only in 2011 and 2012. The government says the tax is aimed at getting richer people to chip in more as Spain struggles with a 21 percent jobless rate, anemic growth and a high deficit. But it has been criticized by the conservative opposition as a populist nod to leftist voters angry over deficit-cutting austerity measures as Nov. 20 general elections approach. The ruling Socialists are projected to lose badly. Salgado's remarks seemed to contradict some made just Friday by government spokesman Jose Blanco, who said no region would get the wealth tax money twice. Salgado said Blanco really meant the same thing she did: that it seems unreasonable for regions to get the money doubly.

Spain to cover 20bn euros in potential bank losses

 

The Bank of Spain has promised to cover up to 20 billion euros ($27 billion) in losses at Caja Mediterraneo as it seeks to offload the troubled savings bank, a newspaper said Monday. The Bank of Spain took control of the bank in July and is now trying to sell it off. According to the daily El Mundo, the central bank let investors know it would cover up to 20 billion euros of losses, the estimated amount of property-related assets at risk in Caja Mediterraneo (CAM), if necessary. If confirmed, the central bank intervention would be "the costliest for the public treasury in Spanish financial sector history," the newspaper said, without identifying its source. The price tag could unnerve financial markets -- it is equal to a government estimate of the maximum cost of recapitalising Spain's entire banking sector. Contacted by AFP, Bank of Spain officials were unable to respond immediately to the report. The Bank of Spain injected 2.8 billion euros and opened a three-billion-euro line of credit for the CAM when it took control of the institution in July. But in early September CAM revealed a first-half loss of 1.136 billion euros and a high 19-percent ratio of bad loans, mostly property-related credits whose recovery was doubtful. The average bad loan ratio for the Spanish banking sector was 6.416 percent in June. According to El Mundo, the Bank of Spain is trying to complete the sale before general elections set for November 20. It said rival banks Santander, BBVA and CaixaBank, as well as a union of three Basque banks, were among candidates to buy the CAM, with Santander the favourite.

Spanish lenders to be seized by Madrid

 

Spain’s official bank rescue fund, Frob, is preparing to nationalise three more groups of savings banks at the end of the month at a cost of nearly €5bn ($6.9bn), but could allow two others extra time to find investors to help boost their capital, according to people familiar with the discussions.

Roche threatens to stop supplying Spanish hospitals

 

multinational pharmaceutical company, Roche, has warned Spain that it may stop supplying its products to Spanish hospitals and clinics. It comes as the company has stopped supplying medicines to Greek hospitals because of the debt they are owed, and that say that what they are owed by some regional administrations in Spain is ‘at the limit’. CEO of the company, Severin Schwan, made the revelation to the New York Times, and El País then asked Roche España for comments. The response was ‘As is happening in other countries, the crisis situation and the debt in Spain is significant and some regional administrations are at their limit’. Regions such as Castilla y León are now paying medical suppliers after two years, but Roche reports delays of 900 days are now happening, while Andalucía, Valencia and Castilla-La Mancha has an average payment time of more than 600 days.

Spain court convicts Basque leader of terrorism

 

Spanish court convicted a prominent Basque separatist of terrorism Friday and sentenced him to 10 years in prison for trying to resurrect the banned political wing of the militant group ETA. Arnaldo Otegi, former leader of the outlawed Batasuna party, can appeal the conviction handed down by the National Court. Four other suspects were also convicted, and three were acquitted. Otegi served 15 months for an ETA-related offense and was freed in 2008, then re-arrested in 2009 over the current case and has been in prison since then awaiting trial. Batasuna was banned in 2003 on the grounds it is part of ETA, which has killed 829 people since the late 1960s in a campaign of bombings and shootings aimed at achieving an independent Basque homeland. ETA is classified as a terrorist organization by Spain, the European Union and the U.S. Four leaders of Batasuna met late Friday for a news conference in the Basque seaside city of San Sebastian to condemn the court's findings. Txeloui Moreno, spokesman of the outlawed party, said Batasuna would find the means to give the Spanish government a "powerful response" to Otegi's sentence. A rally was planned for Saturday in San Sebastian, he said. Over the past decade, Otegi has been perhaps the most high-profile pro-independence Basque nationalist among those who have refused to condemn ETA. But recently he and many in his movement have publicly rejected violence — although not ETA itself — as the way to achieve Basque independence, saying it must be done peacefully and democratically. In this court case, Otegi was charged with trying to form an organization that would replace Batasuna. During the trial, which ended in July, he argued that it was this group which persuaded the pro-ETA Basque separatist community to reject violence. But the court ruled Friday that Otegi was acting on orders from ETA to regroup pro-independence forces into a new political tool for ETA. ETA declared a cease-fire in September 2010 and has not killed anyone in Spain in more than two years. The government says the group has been weakened by arrests and dwindling grass roots support, but rules out negotiations0 and insists ETA must simply surrender. That would bring an end to Europe's last major armed militancy.

Passenger 'tried to open jet door'

 

A holidaymaker who allegedly tried to open the doors of a plane at 36,000ft has been arrested. The Thomson Airways flight from Palma, Majorca, to Newcastle early on Wednesday was diverted to Gatwick. Witnesses said friends tried to restrain a man as he attempted to open the door, and he shouted: "It's OK, we are just on a simulator." Passengers and crew wrestled him into a seat and he was tied up with seat belts. A man aged 22 from Ashington in Northumberland was arrested at Gatwick on suspicion of endangering the safety of an aircraft and bailed to 8 November.

Marihuana seized in Rincon de la Victoria

 

LOCAL POLICE in Rincon de la Victoria arrested a 25-year-old man and seized 30 kilos of marihuana from his home. The police estimate that it would have had a street value of more than €30,000.

Gang who tampered with ATM machines caught

 

 gang of criminals have been arrested by police following a spate of thefts from ATM machines (hole in the wall, cash machines). Police sources have suggested that the arrested had managed to take € 2,420 through 19 illegal “extractions”. The technique involves installing a metal plate over the front of part of the ATM machine, that physically prevented cash being given out. This method of theft is called "cash trapping," so those who were trying to take out cash simply thought the machine was not working, whereas in fact the cash they had requested was sitting behind the installed metal plate awaiting collection by the thieves. When the frustrated person left, the thieves came, removed the plate, and helped themselves to the person’s money. The sites where these crimes occurred were Torrevieja, Pilar de la Horadada, Almoradi and Calpe, although at the moment the Guardia Civil have not ruled out other locations, and believe the gang’s operations may even have stretched into Murcia. When arrested the thieves were in possession of pliers, metal plates, glue, putty, and all essential tools for the installation of the system. This arrest highlights that it is worth checking ATM machines before inserting your card, for signs that it has been tampered with. The metal plate or “cash trapping” technique is the most basic, but there are other more sophisticated devices place over the ATM machine where the card is actually read by a bar code reader installed by a thief, and this can lead to them extracting as much money as you may have available on that card.

Spanish townspeople spear bull to death

 

Lance-wielding Spanish townspeople speared a huge fighting bull to the death Tuesday, defying a lone protester who sprayed some of them with an irritant. Hundreds of people, many on horseback, turned out for the combat with a 608-kilogram (1,338-pound) black bull named Afligido — Spanish for Sorrowful — in the centuries-old "Toro de la Vega" festival. The massive beast charged through the fortified town of Tordesillas, central Spain, crossing a bridge over the River Duero and into a plain in a tradition that dates back to the Middle Ages. Before the lancing began, a female protester sprayed an irritant at some of those taking part before being taken away by police, a witness to the event said. The ritual, which has been held every second Tuesday in September since at least 1453, pressed ahead regardless and about a dozen lancers on foot and horseback attempted to spear the bull's flesh. One of the lancers on foot struck the first blow, conferring the right to lead the bloody, half-hour confrontation with the beast as others hemmed the animal in. The bull was finished off with a final blow to the head from a large screwdriver. Some 200 animal rights protesters later staged a rally in central Madrid to condemn the tradition, which predates the introduction of the classic bullfight at the end of the 17th century. The protesters, carrying banners showing their website "rompeunalanza.com", chanted "Tordesillas, national shame" before breaking wooden lances. "We are protesting over the celebration of the Toro de la Vega in which hundreds of people on foot and horseback lance a bull to death," said Silvia Barquero, spokeswoman for animal rights group PACMA. "We want the end of bullfighting and especially the Toro de la Vega which is even more savage than the bullfight," she said in an interview. Barquero said she believed the end of all bullfighting in Spain was approaching. The northeastern region of Catalonia will hold its last ever bullfight September 25 in Barcelona, after voting last year to end centuries of bullfighting — a first for mainland Spain. Opinion polls show most Spaniards do not approve of bullfighting, Barquero added, rejecting arguments that the bullfight is an essential part of Spanish culture. "Culture cannot be based in the torture and death of an animal. This festival is not supported by most Spanish people." PACMA challenges the Tordesillas town hall's decision in May to declare the Toro de la Vega as a cultural asset. Each region of Spain has responsibility for its own animal protection laws, usually with exceptions for bullfighting. The festival in Tordesillas is allowed under the laws of the Castilla y Leon region.

Expat equity release victims take on banks

 

Tempted by the offer of a salary for life and an inheritance tax reduction, organisers of Equity Release Victims Association, Ian Sherdley, 69, and Euan Armstrong, 73, used their Spanish holiday homes as collateral to buy into the equity release schemes. The schemes were sold by independent financial advisors working the expat communities along the Costa del Sol on behalf of Denmark's biggest bank Danske Bank and Nordea Bank SA. They were told that if they took out full mortgages against the value of their Andalucian homes, which were fully paid for, and then gave the money to the bank to invest, their inheritance tax liability would be reduced and they'd receive a small lump sum, as well as a monthly return on the bank's investment which would cover the cost of the remortgage and provide a small salary. Mr Sherdley, from Lancashire, and Mr Armstrong, from Scotland, followed the advice only to be later told by their Nordic Banks that the investments had gone badly, the remortgaged money had been lost and their homes, with a combined value of €4.5 million, suddenly belonged to the banks. It is thought that there could be hundred of expats in similar positions across Spain and France. A Spanish court has so far suspended the banks' foreclosure and repossession orders on the properties, while a decision as to how the cases will proceed is expected in the near future. According to Mr Armstrong's lawyer, Antonio Flores from Lawbird Legal Services, the schemes were mis-sold, bearing in mind it is illegal to knowingly indebt yourself in order to reduce your inheritance tax liability. He said: "We want to find out exactly how many of the schemes were sold, to who, and on what basis. "As far as I can gather, retired expats were targeted because they had paid off their mortgages, so could use them as collateral and would be tempted by talk of reduced inheritance tax liability." Mr Armstrong added: "We encourage everyone who, like us has been sold one of these schemes to get in touch. "Do not lie down and take this. These banks are making billions every year with your money." A spokesman for Nordea bank said: "We can't comment, but we can say is that Nordea runs its business in compliance with local laws." A spokesman for Danske Bank said: "According to the law we cannot comment on individual customer cases nor questions related to individual customer cases. We have no comment."

Coin, near Malaga in southern Spain, is, like many towns across the crisis-hit nation, on the verge of bankruptcy with an estimated debt of nearly 30 million euros (£26m)

 

Coin, near Malaga in southern Spain, is, like many towns across the crisis-hit nation, on the verge of bankruptcy with an estimated debt of nearly 30 million euros (£26m) owed by the town council. For more than a week there has been no lighting in public areas after power company Endesa cut services because of an outstanding bill of 280,000 euros (£240,000). Meanwhile some 500 council employees in the town have not yet been paid their August wages, it was reported. The town of 22,000 residents has been ordered to make an urgent payment of 400,000 euros (£346,000) to the Treasury in monthly instalments to cover its debts but the mayor has said the town will be forced to file for bankruptcy. Fernando Fernandez from the conservative Popular Party, who was elected mayor following elections in May, has blamed the debt on the previous socialist administration and asked for more time to meet payments. He claims the council workers wage bill alone amounts to 1 million euros a month and that the town's coffers are empty. It is a problem repeated in municipalities across Spain. In some towns, police officers have been ordered to walk to crime scenes in a bid to save costs on patrol cars. In others, austerity measures meant council services such as public swimming pools did not operate this year despite the soaring summer heat. On Tuesday rating agency Moody's warned that Spain's regions could fail to meet their deficit-cutting targets, a move considered necessary for the nation to meet the EU-agreed public deficit ceiling of 3 per cent of GDP by 2013.

Businessmen guilty of £8m "boiler room" shares scam share-selling was undertaken by salesmen working from Marbella and Barcelona,

 

share-selling was undertaken by salesmen working from Marbella and Barcelona, although many of them used false names and claimed to be calling from offices in Frankfurt, Stockholm or Amsterdam. The SFO said the business prospects of the company were inflated by WBR’s directors and salesmen. WBR eventually went into adminstration in 2007 following a petition by creditors. It is now officially in liquidation. Of the £8.2m attracted from investors, about £4m ended up in off-shore accounts in Cyprus, Jersey and Spain, the SFO said. It began its investigation after complaints from people who bought shares. WBR was later included on a warning list published by the Financial Services Authority. SFO director Richard Alderman said: “Boiler room fraudsters prey on vulnerable people, they also deprive genuine businesses of the capital they need to grow. Quite bluntly, they ruin lives. I am delighted that the SFO is playing its part in bringing down operations like these and bringing fraudsters to book

Investigation launched as forest fire destroys four homes on Costa del Sol

 

investigation is under way into a forest fire which destroyed four homes and 400 hectares of land on the Costa del Sol. The blaze – which affected parts of Mijas, Marbella and Ojen – saw more than 300 people evacuated from their homes after starting at around 8.30pm on Sunday evening in the Entrerrios area of Mijas. Andalucia’s Councillor for the Environment Jose Juan Diaz Trillo, suggested the fire had been started deliberately, before confirming that nobody had been injured. Around 300 firefighters from across Andalucia were hampered by high winds as they tackled the blaze, which caused the temporary closure of part of the A7 highway. Residents of La Mairena and La Bugancilla urbanisations were evacuated and parts of Calahonda were also briefly affected, although residents are now being allowed to return to their homes. Around 260 firefighters are involved in dampening down the fire, which is understood to have affected 900 hectares in total.

Spanish-based Seven guilty of 'boiler-room' fraud

 

Seven men were convicted today of an £8 million boiler-room fraud, the Serious Fraud Office (SFO) said. The Spanish-based operation targeted thousands of investors in the UK applying high pressure telesales techniques to push shares in a bio-diesel company, Worldwide Bio Refineries (WBR). In fact, the company was practically worthless. One defendant, company director Redmond Johnson, 66, pleaded guilty to conspiring to defraud investors. Fellow director Dennis Potter, 72, who lived in Singapore, was convicted of the conspiracy along with John Murphy, 35, and Greg Pearson, 38, both of Marbella, Daniel Murphy, 37, and Lee Homan, 37, both of Hertfordshire, and Peter Bibby, 44, of south London, who all managed share sales. Bibby absconded before the Ipswich Crown Court trial and was convicted in his absence. There is a warrant for his arrest. Commenting on the convictions, SFO director Richard Alderman said: "This is an excellent result. Not only do boiler-room fraudsters prey on vulnerable people, they also deprive genuine businesses of the capital they need to grow. "Quite bluntly, they ruin lives. I am delighted that the SFO is playing its part in tracking down operations like these and bringing fraudsters to book." WBR was set up in 2003 and had a processing plant in County Durham that was purported to produce diesel fuel from vegetable matter. It also had a plant in Singapore producing diesel intended to be marketed in the UK. The share selling was undertaken by salesmen working from a number of boiler-rooms in Marbella and Barcelona although many of them used false names and claimed to be calling from offices Frankfurt, Stockholm or Amsterdam. The business prospects of the company and the bio-diesel market were inflated by WBR's directors and the salesmen, who claimed that substantial international business was being done and that the business's shares were valued at £110 million. Investors believed that their investment in a successful bio-diesel enterprise would net them significant short-term returns, bolstered by claims that WBR was to be floated on the stock market. These claims were bogus. The SFO found that the bio-diesel plant had no output and, with only limited imports coming from the Singapore plant, WBR was not being managed with any intention of it becoming a growing commercial success. Virtually all of WBR's revenue between 2005 and 2007 was generated by share sales. Of the £8.2 million attracted from investors, around £4 million was transferred to accounts in Cyprus, Jersey and Spain for the benefit of the boiler-room salesmen. The group will be sentenced at Ipswich Crown Court on September 23.

Fame of killer bull named 'Mouse' spreads in Spain

 

With more than 3,000 fans cheering, a hulking, black-and-white fighting bull named "Mouse" chased one daredevil runner after another, trying to flip them airborne and skewer them as he did a month ago in a fatal goring that enshrined his reputation as Spain's most feared and famous beast. Mouse was greeted in the southeastern farm town of Sueca like a rock star: Everyone stood up at 2 a.m. Sunday in the bull ring's grandstands as he charged across the sand after loudspeakers introduced him with the eerie strains of the soundtrack to "The Good, The Bad and The Ugly," the 1960s spaghetti western film starring a young Clint Eastwood. The 550-kilogram (1,213-pound) bull didn't claim any more victims this time, but tried his hardest to gore runners. And he captured intense media coverage in what could be his last appearance before retirement amid the controversy he has generated about Spain's summertime tradition of bull versus human runs, a pastime that plays out in rings, narrow streets and plazas across the nation. After running with Mouse, a breathless Julian Herroja said the bull is so dangerous that "if you make a mistake, he won't. You'll be a victim for sure." More than 30 journalists were on hand to cover the event in Sueca, population 28,000, near the beach destination of Valencia. Though Mouse will make one more appearance before the end of his season this year, he will run around the ring without runners. Mouse's owner now fends off as many as 60 cell phone calls daily from reporters. Facebook pages dedicated to him include comments from some people praising him for taking revenge against humans in a country where slews of bulls are slain every year in bullfights by matadors. But de Jesus is angry that Mouse has been nicknamed "Killer Bull," saying he gets blame for doing what comes naturally: Defending himself against perceived threats. "We go to entertain people so they'll have fun, but unfortunately they are fighting bulls, and there is always a percentage of risk," said de Jesus, 42, a former bull fighter who raises 70 specially bred bulls and 300 cows. The hype about Mouse has grown so much in Spain that de Jesus is forced to deny reports that the 11-year-old Mouse has killed as many as five runners during his career. But in addition to the 29-year-old victim Aug. 14 in the town of Xativa, he killed a 56-year-old man in 2006 and has seriously injured five more people over the years. Mouse got his name because no one ever expected him to turn into such a raging bull, de Jesus said. As a calf, he was tormented by several youths who broke into his pen and exhausted him almost to death. Then he was nearly fatally gored by another bull at de Jesus' ranch. Critics and bull run aficionados alike agree that security is lax at many small town bull runs, meaning almost anyone can participate — even if they're drunk, have taken drugs or aren't physically fit enough to sprint away from enraged bulls. Sueca's mayor beefed up security Sunday, and the extra contingent of police took away some suspected drunks during Mouse's run. After the bull's last deadly goring, Valencia's regional government announced plans to study how police can be given more authority to detain runners who shouldn't be in the ring, while stressing that the overall number of bull run injuries in the region where they run dropped to 486 in 2010 from 676 in 2008. Hector Benet, an insurance agent for the bull run industry, said the number of deaths each year in the region averages four, with dozens of serious injuries annually. While bulls in the runs aren't killed or bloodied like their counterparts in bullfights, animal rights groups say the events are a form of animal torture, with bulls terrified by the hundreds of people who taunt the animals by yelling at them, poking them with long sticks and tossing sand from the plaza at them. "Mouse is the proof that the bull runs are barbaric and medieval," said Leonardo Anselmi of PROU, the animal rights group whose signature-collecting campaign led to a bullfighting ban in Catalonia, which neighbors Valencia. "It's excessive and cruel violence. The culprits are the politicians who allow the bull runs." But after Catalonia banned bullfighting, politicians there put in protections for other bull-related traditions, including "correbous" — when metal rods with flaming balls of wax or fireworks are attached to bulls' horns before they are let loose to run around bull rings or plazas and chase people. It's all part of Spain's centuries-old fascination with bulls, with animals used in public as a test of bravery and part of the national identity. Spaniards also run with bulls in northern Pamplona every year, spear them to death from horseback in a town called Tordesillas and cordon off town squares to let children dodge feisty calves bred to become top-fighter bulls. Sueca's mayor, Salvador Campillo, was torn on whether to let Mouse perform in his small city after this year's fatal goring by the bull. In the end, he decided to go ahead because he's a bull run fan. "Raton is a bull that gives a great show, he never stops," Campillo said with a smile. The town's annual end of summer party also features an international paella cooking competition in place since 1961. The contest attracted chefs this year from top restaurants from Spain and France, plus one from Chicago. Campillo said de Jesus told him that the Sueca event would be Mouse's last real run before retirement, but de Jesus insisted he won't decide until next year whether Mouse will be put to pasture to breed "some little Mouses" with a chance of inheriting the bull's agility, aggression, intelligence and speed. Mouse's eventual retirement will probably prove lucrative for his owner, Campillo said, because cow owners who want mating privileges with the bull may have to pay as much as €3,000 ($4,145) for each use of his services.

Spain to bring back Patrimonial Tax

 

The Spanish Prime Minister, José Luis Rodríguez Zapatero, will bring back Patrimonial Tax at next Friday’s cabinet meeting, following a request to do so from the Socialist candidate for the November General Election, Alfredo Pérez-Rubalcaba. A Royal Decree will be used, and no new law will be needed to reactivate the tax, although the new tax will be modified so as not to affect the middle classes. However press reports indicate that Rubalcaba is not entirely happy with the tax which will result, although it is the only option which can be introduced so quickly. The new Socialist manifesto was to promise that Patrimonial Tax would become a state controlled and not regional tax as present. Even so Rubalcaba considers the re-introduction of the tax as ‘just’. It is expected to generate 1.4 billion €.

Spanish warship rescues French hostage from pirates

 

Troops from a Spanish warship stormed a pirate skiff in the Gulf of Aden Saturday and rescued a French hostage missing from her yacht but found no trace of her husband, the EU anti-piracy mission said. As a helicopter kept watch overhead, naval commandos in a fast launch fired on the skiff to disable its engine. The boat sank, but the hostage was rescued and seven pirates were arrested unharmed, the Spanish defence ministry said. "She was the only hostage on board the skiff. Her husband was not on board," EU naval spokesman Captain Paul Gelly told AFP, confirming the rescued hostage was Evelyne Colombo, wife and crewmate of missing sailor Christian Colombo. "She is safe and sound," he said, explaining that Colombo and the detained pirates are now on board the Spanish ship. A German warship, the FGS Bayern, found the couple's catamaran the Tribal Kat, adrift in waters off Yemen on Thursday. There was no-one on board and the EU Atalanta naval command launched an air and sea search for the attackers. French officials said there were signs of a struggle on board the yacht, which was towed to Djibouti to be studied by agents from the DGSE spy agency. "It was like searching for a needle in a haystack," Gelly said. "Our priority was to search for any vessel that might have been leaving the area and heading for the coast of Somalia." The French frigate Surcouf detected a suspect vessel and on Saturday the Spanish warship SPS Galicia chased it down. The Spanish defence ministry said when the skiff ignored an order to stop, the commander of the Galicia ordered his men to open fire. "At that time, it was discovered that they had a hostage on board, who was a woman," it said. "The amphibious ship proceeded to intercept the pirate vessel. The operation involved a helicopter and naval warfare team, who fired on the engine of the boat, to disable it." Christian Colombo is a former French navy crewman and the couple were experienced sailors who wanted to see the world and were passing through the Gulf of Aden en route for the Indian Ocean and eventually Thailand. "They knew they were taking a risk and everyone advised them not to go," a relative told AFP. One of the couple's daughters, Emilie, posted a message of concern on the blog they were keeping of their high seas adventure. "The last I heard from Christian was around a month ago. He was south of Egypt and heading for Malaysia," said the skipper's friend Gerard Navarin, who once helped him set a catamaran speed record off Toulon. The waters between Yemen and Somalia are notorious for attacks by pirate gangs, and French yachts have been among the vessels seized in the past. A second yacht went missing at around the same time as the Tribal Kat. Somali pirates frequently seize crew from merchant ships and pleasure craft in the dangerous waters off the conflict-ravaged Horn of Africa and have taken millions of dollars in ransom for their release. According to the watchdog Ecoterra, at least 50 vessels and at least 528 hostages are being held by Somali pirates, despite constant patrols by warships from several world powers. A French couple was kidnapped from a yacht in September 2008 as it headed through the Gulf of Aden. A ransom was paid, but French commandos later ambushed the pirates, killed one, captured six more and recovered the cash. In April 2009, another French yacht was seized. This time special forces troops intervened when the boat was still at sea. In the ensuing gunbattle a French bullet accidentally killed the hostage skipper. In addition, a French DGSE agent is thought to have been held hostage by Islamist militants in the Somali capital since July 2009

Spain scandalised as wealth of millionaire politicians is revealed

 

Spanish politician sparked public anger yesterday as he was shown to own 22 properties after the country's parliamentarians were forced to open their finances to scrutiny following a series of corruption scandals. The revelations – which saw the parliament's website crash when tens of thousands of people tried to view the figures – also showed at least eight others were euro millionaires, even before property was taken into consideration. Related articles Franco's minister quits Spanish politics, aged 89 Search the news archive for more stories News of the wealth of some of the country's representatives went down badly with many Spaniards, who have been repeatedly urged to tighten their belts in a country with the highest rates of unemployment in Europe. They are bracing themselves for austerity measures and according to a survey on the Spanish newspaper El Mundo's website, 60 per cent of those interviewed said they were "scandalised" by the average level of income. One of the richest MPs was revealed as Francisco Javier Gomez Darmedrail, from the Popular Party, which was voted out of power in 2004. According to El Mundo, Mr Darmedrail, who has connections to the construction industry, declared 22 different flats and houses in his 2010 tax return, including some apparently given as donations. One senator, Jose Luis Barreiro, had 17 properties, including a hotel on an archipelago in the Canary Islands. The leader of the communist-dominated United Left coalition, Gaspar Llamazares, had €303,058 in savings and investments and joint ownership of a flat, the figures showed. The figures revealed average savings of €163,000 and two properties per MP. Prime Minister Jose Luis Rodriguez Zapatero – who will not stand for re-election in November – held €34,925 in a joint account with his wife and three pension schemes worth just €3,463. Mariano Rajoy, the conservative likely to be the next prime minister, reports having nearly €600,000 in bank accounts and shares, plus properties in Madrid, the Canary Islands and his native Galicia. His Socialist opponent, Alfredo Perez Rubalcaba, reports having about €1m, a Madrid apartment, a parking place and no debts. The richest on paper was the former Socialist minister Mercedes Cabrera with more than €6m in investments, held jointly with her husband, a high-profile financial analyst. The financial declarations followed legislation passed in July to ensure that politicians had "glass wallets" following a series of scandals. They largely involved town hall corruption involving construction and illegal building permits.

Kicking in shop windows. Setting a police car on fire. Clashes with police. Tottenham? Hackney? Brixton? No. Lloret de Mar on the Costa Brava.

 

Kicking in shop windows. Setting a police car on fire. Clashes with police. Tottenham? Hackney? Brixton? No. Lloret de Mar on the Costa Brava. Last month police fired rubber bullets – but not at rioting Spaniards but at drunk foreigners. After two nights of riots that dragged on until the early hours, there were 20 injured, including nine police officers, and 20 arrests. Significantly – in a city of 40,000 with 25 discos, 261 bars and approximately a million tourists a year – all those detained were foreigners. Now, it’s only a small minority of Spanish resorts that have this problem with drunk foreigners and for every Lloret del Mar, there are hundreds of other resorts where peace reigns. But we have to remember that it was the British, after all, who created many of the bars and discos on the Costa Brava, not the Spanish. The exchange rates were low and everything was cheap. Freddy Laker organised cheap flights and Wallace Arnold cheap coach tours. In the late 60s, many hotels, bars, restaurants and nightclub/ discos were British-owned. The intention was to create a Blackpool with sunshine (and chip shops and … pubs). For decades it worked well but then, as in Blackpool, the clients changed. Spain, too, after the death of Franco. The Guardia Civil and local police lost some of their powers. Somehow the Spanish now need to strike a balance between tourism and civic order but the current economic climate makes that increasingly difficult. Binge drinking is definitely frowned upon and discouraged in the UK. But there’s a whole raft of British teenagers who leave what little common sense they have back at the airport and, when they touch down at some Spanish party town, immediately get blind drunk, in the belief they can get away with even more immoral/ anti-social behaviour abroad because ‘out of sight’ means ‘out of mind’. It’s these same people who get drunk on a Saturday night in English city-centres who go to Spain for longer and cheaper drinking hours. Some attribute this anti-social behaviour to a lack of discipline at all stages of a teenager’s development. British parents can’t smack young children, teachers can’t punish those who behave anti-socially and the UK police are tied up with human rights law. So, drunk teenagers believe they can carry on getting away with it. All of which could, unfortunately, go on longer than those DFS sales …

Spanish site crashes as lawmakers reveal worth

 

In a country with 21 percent unemployment, learning the net worth of lawmakers plugging austerity right and left is turning out to be irresistible. Spanish parliament released such numbers for the first time and its website immediately crashed. Hours later access was still spotty. Highlights of Thursday's revelations: Mariano Rajoy, the conservative likely to be the next prime minister, reports having nearly euro600,000 ($843,000) in bank accounts and shares, plus properties in Madrid, the Canary Islands and his native Galicia. His Socialist opponent Alfredo Perez Rubalcaba reports having about euro1 million ($1.4 million), a Madrid apartment, a parking place and no debts. This transparency stems from a reform approved July 10.

Spain's central bank kicked off the sale of Caja de Ahorros del Mediterráneo a day after the bailed-out lender disclosed huge losses and triggered new fears about the health of the country's ailing savings banks.

Spain's central bank kicked off the sale of Caja de Ahorros del Mediterráneo a day after the bailed-out lender disclosed huge losses and triggered new fears about the health of the country's ailing savings banks.

The Bank of Spain's adviser in the sale, Bank of America Merrill Lynch, is distributing sales documents to potential bidders, asking them to present nonbinding offers by the end of the month, according to people familiar with the situation.

However, the response has been lukewarm so far, they said.

Agence France-Presse/Getty Images

CAM's bad loans soared to 19% of total lending at the end of June, after its new central bank administrators reviewed the loan book, doubling the 8.5% past-due loan ratio disclosed by CAM in March. Above, a woman walks in front of a CAM branch in Madrid in July.

The central bank hopes to wrap up the sales process by the end of October, the people said.

Spain faces a mammoth task in finding a buyer for CAM, which has €71 billion ($100.10 billion) in assets, rising bad loans and dwindling deposits. It came under government control in July. Preliminary results, published Monday, showed its balance sheet had deteriorated much more than previously thought; it lost €1.14 billion in the first six months.

A Bank of Spain spokesman declined to comment. Bank of America officials weren't immediately available to comment.

CAM's woes add to pressure on the Bank of Spain's efforts to clean up a banking system that continues to grapple with the collapse three years ago of a decade-long housing boom. CAM, Spain's 10th-biggest bank by assets with an extensive branch network, was a big lender along Spain's Mediterranean coast, where bankrupt developers have left thousands of half-finished apartment buildings and plots of land with their lenders.

The bank's bad loans soared to 19% of total lending at the end of June, after its new central bank administrators reviewed the loan book, doubling the 8.5% past-due loan ratio disclosed by CAM in March.

"We were expecting the revised numbers to be bad and that the new administrators would recognize new loan losses, but these numbers are very scary," said Maria Lopez, a banking analyst with Espirito Santo Investment in Madrid.

CAM's size, as well as its problems, means only the largest Spanish financial-services companies have the capital and access to financing under current market conditions, bankers say.

One potential buyer is CaixaBank SA, the Barcelona-based lender with the biggest branch network in Spain. It has hired U.S. investment bank J.P. Morgan Chase to advise on a potential bid, according to people familiar with the matter, although an offer is far from certain, one of those people cautioned. A spokesman for J.P. Morgan Chase in Madrid declined to comment.

CaixaBank has higher capital ratios than its larger and more internationally focused rivals Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA, two other candidates to take over CAM.

However, bankers say that both Santander and BBVA would likely have to issue new shares to raise the funds needed to clean up CAM, a move that would be dilutive to existing shareholders and could spook jittery investors.

Santander and BBVA officials declined to comment.

Some foreign lenders, including Barclays PLC and BNP Paribas SA have looked at CAM in the past, but it is unclear if they will join the upcoming auction. Barclays and BNP Paribas officials declined to comment.

Several private-equity firms have also asked for a look at CAM's books. But bankers say they believe buyout firms won't be able to offer as high a price because they can't realize the same cost savings that banks could achieve by combining operations.

Eight lenders went through CAM's books before it was seized by the central bank in July, but all balked as authorities were initially unwilling to provide protection against potential loan losses.

In earlier auctions of seized banks, the Bank of Spain has offered loan-loss protection to bidders, and this program is likely to be repeated with CAM, people familiar with the matter said.

Spain injected €2.8 billion into the Alicante-based lender this summer. Before the central bank takeover this summer, CAM was in advanced talks to merge with three smaller peers. But the would-be partners became increasingly concerned about CAM's solvency and pulled out of the merger plan.

Worries about the health of Spain's banks are pushing up borrowing costs for Spain's government. The yield premium over 10-year German bonds, the euro-zone benchmark, has hit record levels in recent weeks as investors fret about the European Union's faltering efforts to strengthen support mechanisms for financially frail countries.