Op-ed: New lenders, old habits

The newly-formed Spanish savings banks are starting to commit some of the errors that precipitated the need to restructure the banking sector, a process that has yet to be completed.

Errors include a lack of transparency about manager compensation packages in addition to returning to the practice of protecting millionaire managers, even if not to the extent as in the past. Also, directors in charge of savings banks that have been bailed out with federal funds have been padding their retirement packages to a total of 65 million euros.

Finalizing the restructuring of the banking sector required more than simply consolidating the savings banks, but redefining a failed management strategy that precipitated financially unsustainable practices in many cases. We currently lack controls that are necessary for monitoring transparency and tailor-made retirement packages.