Grauniad editorial about Spanish bank bailout. In the comments:
What I find amazing in all these bank bailouts is that the creditors who lent money to badly-run banks, and the idiot management that ran them into the ground, both get away scot free. Instead, taxpayers have to pick up the tab.
It would make other managers think twice if when there was a bailout at least the incumbent board and managers got properly sacked and disgraced.
Well, the managers of the cajas have all been sacked.
But more importantly, there isn\’t anyone other than the taxpayers to take the hit. You see, the cajas were mutuals (and often charitable foundations as well). Thus there just aren\’t any shareholders to take the loss or to top up the capital.
There is actually a value to these shareholders you see? Sure, they get the profits in the good times. They also take that first chunk of losses in the bad. Yes, even at RBS and Lloyds, while the loss isn\’t total it has certainly been severe.
And the problem in Spain has been at least partly that there just weren\’t any people in that situation.