Panic Spreads: G-7 Finance Ministers hold Emergency meeting on Spain

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“Indications are that the imminent bankruptcy of Banco Santander, the lead bank of the British Crown’s Inter-Alpha Group, and the largest bank in Europe, is now at the center of the crisis” LaRouchePAC

“Spain will be sacrificed on the altar of high finance.Daniel Estulin

Panic Spreads; G-7 Finance Ministers Hold Emergency Meeting on Spain

June 6, 2012

By the time the normal workday began on the Western side of the Atlantic on Tuesday, the Group of 7 Finance Ministers (U.K., U.S., Canada, Japan, France, Germany, and Italy), plus European Union officials, had concluded an emergency videoconference call on what to do about the Spanish financial blowout. According to some accounts, continuing massive capital flight out of Spain was top on the agenda.

Before the meeting was held, Spain’s Treasury Minister Cristobal Montoro stated on Spanish radio that the price being demanded to buy Spain’s debt (its risk premium) meant that Spain was effectively cut out of the international capital markets, and could not refinance its debt. “Confidence,” therefore, had to be restored by “Europe” (that is, Germany) directly recapitalizing the Spanish banks. And besides, he lied, the sums needed to save Spanish banks aren’t really that much, while technically a bailout of Spain (as a nation) could not work. “The men in black are not going to come to Spain,” he “joked.”

Indications are that the imminent bankruptcy of Banco Santander, the lead bank of the British Crown’s Inter-Alpha Group, and the largest bank in Europe, is now at the center of the crisis. Eminent American forecaster Lyndon LaRouche and his EIR magazine identified Emilio Botin’s Santander Bank as the center of the Eurozone bankruptcy in February 2010.

On May 31, Spain-based journalist Daniel Estulin, citing high-level sources at the bank, told the Telediario program of Spanish business channel Intereconomia that Santander has 800 billion euros in bad debts, and that Botin has ordered a firesale of foreign assets to plug the hole. According to Estulin’s source, Botin was recently forced to accept 3% of face value in order to unload toxic assets on NY’s Fortress hedge fund.

British news service Reuters put out a wire on June 4 attempting to calm concerns that Santander is as bankrupt as the rest of Spain’s banks. Santander’s stock has lost 40% of its value in the last year, for no reason, Reuters argued. No capital flight has been reported from its Mexican or Brazilian subsidaries; and the run on its UK unit last month stopped when UK authorities slapped on exchange controls.

Botin himself stated authoritatively on June 4 that “there is no financial crisis in Spain,” adding a call for Europe to bail out Spain’s other banks, asserting that a mere 40 billion euros would stop the crisis. Notably, he did this during a visit to Brazil, the leading source of Santander’s profits globally, where he mightily denied the reports that Santander was trying to sell 30-40% of its Brazilian ownings, in order to raise cash.

The “men in black” may be digging graves in London first. The Daily Telegraph, which began the day citing the estimates of economists from Royal Bank of Scotland (RBS) that Spain will need between 370 and 450 billion euros once any bank rescue begins, reported this afternoon that the top 5 British banks are “sitting on a 40 billion pound ($61.5 billion) black hole of undeclared losses,” according to shareholder advisory group PIRC. And of those five, it is the Inter-Alpha Group’s RBS which is in the worst condition.

So, were any decisions announced from the emergency G-7 meeting? EU spokesman Altafaj called it a “regular exchange of views;” any idea that they were “extraordinary or alarm or alert meetings because of the crisis” should be dismissed. Japanese Finance Minister Jun Azumi told reporters the G-7 members were “concerned about the unstable situation in the current global economy, and we need to share these concerns.” An unidentified U.S. Treasury official said merely that they discussed “progress towards financial and fiscal union in Europe,” and Treasury believes “measures to strengthen the European banking system will be of special importance in this period.”

The next scheduled official policy confab is the June 18-19 G-20 meeting in Los Cabos, Mexico… which convenes the day after the Greek elections.


Daniel Estulin on Intereconomia – Club Bilderberg 2012 meeting
video In Spanish  with English transcript below )

English transcript of the interview:

Intereconomia: Okay. We are presently with one of the journalist which has been investigating most thoroughly the famous Bilderberg Club. Daniel Estulin, how are you?

Daniel Estulin: Good evening

Intereconomia: You are probably the one who has studied the most this topic. We do know the headlines, but we do not know the content (of this meeting). In the content of this weekend, could this be that Soraya Santamaria (  Sáenz de Santamaría Antón, Spain Vice President and Minister for the Presidency – attendee at the Chantilly Bilderberg Conference) would obtain any kind of agreement or would succeed in pressuring the other leaders of the world?

Daniel Estulin: Soraya doesn’t fit in the picture for any agreement. She comes over there and THEY’LL tell her exactly what she has to do without her having to say a word about anything. She is nobody in this group. She will go back to Spain with the club’s directives. People think of the Club Bilderberg, which she is taking part, that this a kind of  meeting like if everyone were to be equal. Obviously, it is not the same thing to be David Rockefeller than to be Santamaria. I say it again, she’s going there and they will tell her what is expected out of her, out of the Spanish government, following the instructions of the Club. And she has to comply. Basically, what is expected, according to my sources – and my sources have never proven to be wrong throughout the years like they have shown – one of the main preoccupations, is that a crisis, a mega crisis, is coming, Like what happened a few years ago with Lehman Brothers, the solutions needed to save a part of the economy as well as the Spanish banks means that some of the financial institutions in Spain will have to disappear. And this is a conclusion reached yesterday and this morning which is very worrisome, an absolute preoccupation, and we will have to ask Santamaria. Some big Spanish financial institutions will have to disappear.

Intereconomia: Do you have specific names?

Daniel Estulin: We do not have this information as of yet. The meeting will last till tomorrow afternoon but you can be sure that Santamaria already has the instructions from the Club.

Intereconomia: What other kind of instructions would he have received?

Daniel Estulin: For example, among the main topics that were discussed yesterday morning, is that they are about to destroy the value of the US Dollar relatively to the Chinese yuan and with the resulting inflation they will try to eliminate the debt, which is going to be extremely bad for the United States. One of the themes that has not been discussed yet but that remains one of the most important topic in informal talks is the preoccupation with the Bank Santander which has a debt of 800 billion Euros that is impossible to pay back. Bank Santander is doing all it can to hide that fact. You have to take into consideration that Emilio Botin gave Santander the order to sell absolutely every properties, in Mexico as well as in Miami. There is one more scoop that has not come out from the media, which I am going to reveal in exclusivity here, is that two months ago, according to an insider from Santander, they reached an agreement with a hedge fund called “Fortress” to whom Banco Santander sold 1200 million de euros of toxic assets from the 80’s for a value of 31 millions Euros, that represents 3 percent of the bank’s value. And this are things going back thirty years ago, so just imagine how much toxic assets there remains to be sold.

Intereconomia: The Bilderberg is supposedly a secretive Club, but more and more being talked about, what more could you tell us about them?

Daniel Estulin: We must make a distinction between conspiracy theories and reality. Bilderberg is not a world government. This doesn’t exist. Whoever associate in the same sentence Bilderberg with one World government is an conspiracionist. But yes there is the concept of a World Enterprise SA, financial powers and oligarchs which are more powerful than any governments. In that sense we can see, like with Santa Maria going to Washington to meet with the heads FMI and the World Bank, all these persons from financial institutions have more power than any government, and in that sense, as we were talking before this program, we are making a great movie on the Bilderberg based on my book “The true story of the Bilderberg Group” It is being produced by Proindis film, a bold Spanish company which for the first time in history, this subject will be shown on the big screen within a few months.

Intereconomia: We will all be watching for the release of this movie. Daniel Estulin, thank you very much.

Daniel Estulin: You are welcome.

Translated from Spanish by CNLib

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