Sabadell Buys CAM for One Euro as Spain Banks Bail Out Caja

Banco Sabadell SA agreed to acquire stricken Spanish lender Caja de Ahorros del Mediterraneo for one euro in a deal financed and guaranteed by Spain’s commercial lenders to shield the national budget from losses.

Spain’s deposit-guarantee fund, which is financed by the country’s banks, will first inject 5.25 billion euros ($7 billion) into Alicante-based CAM. The impact on Spain’s budget will be “nil” as the deposit fund will also guarantee losses arising over the next decade, the state bailout fund said.