The Generalitat, Catalonia's government, is putting pressure on Sabadell to take advantage of the Spanish central bank's upcoming debt issue to buy CaixaCatalunya.
But Sabadell is still trying to digest the CAM purchase, and it would be too risky to absorb another problem-riddled bank.
Once again politics is interfering with efficient financial reforms, which is making it hard to finalize the reform process and complicates the bidding struggle for the most profitable option, which could give the potential buyer a competitive edge. That is to say, a better buy price.
The politicians are forgetting that the markets are waiting on Spain to clean up its financial sector.