http://www.economist.com/news/finance-and-economics/21574498-bill-comes-investors-bankrupt-cajas-up-smoke
This article discusses how people who bought shares or subordinated debt in Spain’s dodgiest cajas, or savings banks, have either been all but wiped out or forced to take hefty losses. Many of the 350,000 retail customers who bought Bankia shares in its 3.1 billion flotation in 2011 have already seen their money go up in smoke. Retail investors spent an average of 6,000 each buying stock at a price of 3.75. Within a year Bankia needed a 19 billion bail-out; within 18 months it had a negative value of more than 4 billion. The shares are now trading at around 15 cents, a 96% fall on the issue price. If I were one of the people who bought shares, I would be furious and demanding my money back. I feel bad for everyone who is involved in this.
I agree. Though the partial responsibility is due to the investors, losing this much over nothing is indeed infuriating. Though the fund from finance ministry will help straighten things up, I think there should be some consideration so that the same things would not happen again.
ReplyDeleteWhile it is a massive blow to one's bank account as an investor you know how the game works, it's a gamble and nothing is guaranteed. Now I'm not saying I wouldn't do anything and everything to get my money back but still, you know the risks assumed when investing, hopefully some kind up compensation is put into effect but I wouldn't hold my breath.
ReplyDelete