30.05.2012
By Simon Miller
The Bank of Spain’s governor Miguel Angel Fernandez Ordonez has attacked a “campaign” against the central bank as he quit his post before the end of his term.
Ordonez told Spain's prime minister Mariano Rajoy yesterday that he was stepping down on 10 June following increasing criticism of his policies after the part-nationalisation of Bankia at the beginning of the month.
Speaking to reporters today (30.05.2012) following his resignation, Ordonez commented: "There has been a campaign against the prestige of the Bank of Spain."
Tensions have mounted between the regulator and elected officials after the government called in consultants to examine Spanish banks’ books, a move that "undermined the central bank’s sovereignty" according to Catalan party CiU’s economy spokesman Josep Sanchez Llibre.
According to a 16 May letter to Rajoy which was leaked to the press, Bank of Spain inspectors called for Ordonez's resignation with the final straw being the approval of Bankia’s proposals to meet new banking rules just days before it was nationalised. Officials saw this as the last in a series of events that undermined the central bank’s credibility.
Other stories you may find of interest:
A very British Complex
Greater complexity leads to greater risks for banks according to Professor Simon Collinson, Warwick Business School and the Simplicity Partnership
Fencing off the risk?
The Independent Commission on banking has set the cat among the pigeons with the recommendation to ring-fence retail operations. Simon Miller looks at how this came about and what unintended consequences could arise
Impacting on investment
With emerging markets looking for investment, Simon Miller looks at the rise of impact investment and what risks entails in this socially aware vehicle
