Caja Mediteraneo or CAM announced the need to seek bailout funding to the tune of 2.8 Billion Euros.
Following the collapse of a merger agreement,Spanish savings bank Caja Mediterraneo (CAM) declared it would apply for state funds to meet capital requirements.
CAM was due to merge with other cajas, but three of the partners in the state-driven Banco Base merger voted against an association with CAM.
CAM which mainly operates all across Spain, has lent heavily to both property developers as well as domestic mortgages. These loans are not looking as healthy as they once did, given the downward spiral of the property market and unemployment.
Only yesterday in response to the 9Bn bailout of Caja Castilla La Mancha, Pedro Solbes Finance Minister said,
"The cajas are solvent, as is the financial system".
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