BBVA expanded capital to cover losses from its U.S. subsidiary

The heavy losses suffered last year by the U.S. subsidiary of BBVA Spanish forced the agency to carry out two capital increases amounting to 711 million euros to guarantee the solvency of its American bank.

Sources of soccer's governing body to Francisco Gonzalez admitted that the decision to reorganize the stock of BBVA Compass eroded capital ratios and had to replenish its own funds, which were entirely produced by the array.
However, a bank 100% owned by the parent, there is no obligation to notify immediately.
The capital increases were carried out late last November. That is, it was at that moment when the BBVA acknowledged the problems of its subsidiary and became determined to mitigate and to replenish themselves consumed by the hole.

However, these losses are not acknowledged publicly until two months later, when the annual results presentation acknowledged a breach of 1,071 million euros.

And it took two capital to cover losses has not been disclosed to the distribution of the annual report that the entity is required to publish before the shareholder meeting, which will take place on March 12.

During 2009 the BBVA in the United States suffered losses from the impairment of financial assets (resulting from late payments) amounting to 1,419 million euros, while 1.056 million were devoted to other provisions.

In the fourth quarter of the year was when there were 533 million special sanitation and another 998 million charge for impairment of goodwill.

These allocations allowed to keep the coverage rate of BBVA Compass at 57%, although delinquencies soared from 3.4% to 5.2% in the year to update the loan portfolio related to real estate, one who has suffered the crisis in the U.S. too.

There was also much more marked deterioration at the end of 2009. Excluding extraordinary write-downs between October and December BBVA Compass lost 122 million euros, when he had won 40, 42 and 20 million in the first three quarters.
The complicated situation in the U.S., home of the financial crisis that began in the summer of 2007, is reflected in other sections of the balance of BBVA.

The second Spanish bank has an exposure of 513 million in assets considered garbage (subprime), plus another 13 million in structured products linked to toxic.
The first of the entries got fat at 22 million euros over last year, while the structured bonds fell by 13.

United States is one of the major axes of BBVA's growth in the future, along with its bid to China.

Spain: Unions reject Lloyds restructuring plan that foresees 190 layoffs

The unions rejected "again and unanimously" the restructuring plan of the financial institution Lloyds Banking Group, which resulted from the merger completed earlier this year in Halifax Bank of Scotland (HBOS) and Lloyds TSB, which includes the dismissal of 190 workers.
According UGT said in a statement today, the unions held another meeting yesterday with the address of the entity in which the company presented its bid that seeks to reach agreement with the employee representatives.
He added that previously, the agency gave "a small part of the basic documentation that was requested by the unions" and I pose in their pre-retirement program and downs through layoffs.
UGT explained that on the basis of surplus staff of 190 employees that the company raises, of which 46 must be reduced early retirement of people born in or before 1952, is added confirmation that these 46 people will leave the retail banking in its entirety.

He added that of the 144 remaining workers, the company says it could extend a hand early retirement, provided that the unions accept the early retirement call "industrial", which means that the charge on early retirement and unemployment benefits to supplement income bank fixed, dismissing the rest.Thus, explained that conditions are that the bank planned early retirement with 80 per cent of Pensionable Salary (SP) net, that is, minus income tax and social security contributions.
In addition to paying the Special Agreement to the Social Security retirement age.

However, he indicated that the direction of the entity is not identical issues "very important" as the early retirement age, retirement or the end, though is around 63 or 64 years.
As for layoffs, UGT says the company expects to take place through a Force Adjustment of Employment (ERE) by extending the 20 days per year of establishing this formula up to 40 days per year, of which only the top 20 would be tax exempt and the remaining 20 should be taxed.

Finally UGT said of such proposals, the unions reject the offers, but said they would file a unitary alternative to the company's offer in the near future.
He added that employee representatives nor accept any closure "unilateral" branches.
"We do not accept or dismissal and we are concerned not only the 190 employees that the bank intends to cut now, but also the viability of the new bank resulting from the merger to the address we accuse them of lack of commitment, in the absence of a specific project for the future