Bad news for Spanish retirees, especially for my retired policeman contact there.
All the way down from EUR 3.75. The Spanish government has bailed out the bank, taking EUR 7bn in convertible bonds. A default would trigger the bonds, officially making the State a shareholder of the bank.
Now, the history of this bank is one of getting liquidity from where there is some to bail out banks with no liquidity at all. The source of liquidity was Caja Madrid, a public regional bank with plenty of current and savings accounts. The liquidity hole were CAM and the like, deeply immersed in real estate, especially vacationing houses. To support the plan, the company went public with an initial price of EUR 3.75. The main public were retirees, who have financed the whole operation so far.
Savers have withdrawn about EUR 1bn from the bank and is in the verge of a full-blown bank run.