Spanish bank bailed out

The Bank of Spain has stepped in to bail out a regional savings bank after merger talks with another similar entity broke down, officials said.

Bank of Spain governor Miguel Angel Fernandez Ordonez said the step had been taken to guarantee Cajasur, an Andalucian bank based in the southern city of Cordoba which had been founded and controlled largely by the Catholic church, could continue operating as normal.

Mr Fernandez said the Bank of Spain had decided to replace the entire board of directors of Cajasur, adding: “As a result, depositors and creditors can maintain absolute peace of mind.”