Media reports suggest that Barclays is planning to buy one of Spain’s regional savings bank. The latest news comes after the Spanish government had said last week that Barclays chief Bob Diamond met Spanish Prime Minister Jose Luis Rodriguez Zapatero in Madrid.
Quoting sources, The Sunday Times said Mr. Diamond was seeking guarantee from the Spanish government that Barclays will not have to assume of any history debt. Barclays refused to comment terming the ongoing discussions ‘private’.
The Spanish government said that the talks revolved around financial markets and European and global economic conditions.
Spain has a large number of regional savings bank called cajas. Many regional savings banks are struggling to avoid a collapse with high levels of bad debts after the Spanish property sector crashed.
The report did not mention the name of the banks that Barclays is evaluating for acquisition.