The Bank of Spain inspectors are about to go to war with Governor Miguel Angel Fernandez Ordoñez. Because the bank inspection met its objectives rigor, the technical officials do not have any qualms about toning down the conclusions espoused in their reports or in allowing lenders to turn deaf ears to the adjustments and recalibration that the inspectors have demanded them to put in place. This would be a clear de-authorization of their work.
Ordoñez made it clear that he will oppose the Bank of Spain´s measure in the interest of policy, despite what that would say about the nature in the institution and even at the risk of degrading the prestige of its professional core, who will get the blame for everything as if he were no the visible head.
So the new government should adopt measure that promote and guarantee that the body of inspectors are independent such that they do not become culprits of leadership that does not back or defend, but wastes its efforts. The willingness of these professionals cannot be more proper than it is at this time.
They should demand sure damages to be paid for the millions that were loaned to savings banks during intervention, or to the Frob or the CAM. And they want more force with the administrations of lenders in the worst shape such that their responsibilities are clearly vetted out.
In summary, the inspectors are conducting a far-sighted analysis: what they need is to be tougher with bad savings bank managers, one of the key issues that Ordoñez should not have avoided during the restructuring of the sector. Should they be silenced for that?
