Economics

Europe’s Bank Undertaker Passes Its First Test

The Single Resolution Board forced the sale of an ailing Spanish bank, and buyer Santander says it’s great news for Europe.

Pedestrians pass a Banco Popular Espanol SA bank branch in Madrid.

Photographer: Angel Navarrete/Bloomberg
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Banco Popular Espanol SA was declared to be failing by the European Central Bank late on Tuesday evening.

On Wednesday morning, its branches opened for business as usual, with its 77 billion euros ($86 billion) of deposits available: no market panic, no lines of desperate clients at cash machines, no political finger-pointing.