In Spain, a Coalition Forms to Force Troubled Savings Banks to Merge

The Spanish government agreed Wednesday to work with the main opposition party to require the country’s savings banks, weakened by mounting write-offs related to the collapse of the real estate market, to merge by the end of June.

Merger talks between some of the savings banks, known as cajas, have stalled for months because the local authorities that control the cajas disagree on how to divide control over the combined entities, amid personal and party rivalries.

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