Shadowed by Bankia and Banca Civica´s IPOs, there is another important operation going on in the Spanish financial sector that seems unnoticed: the entry of a business group leaded by Jose María Castellano as shareholders of the new entity created after the merge of different cajas.
Initially Novocaixagalicia was heading to disaster after Feijóo wanted to maintain the bank?s local identity, limiting its size and diversification.
A wrong decision if we take in consideration the new capital measures imposed to Spanish financial entities.
Finally, Feijóo has found a privately funded initiative to make sure that the bank will not lose its Galician origins. The background of its new investors guarantees a better future, because of their good relationship with funds that can help to recapitalize the bank completely.
Translated and Edited in English by Jose L. De Haro
