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S. push, detailing that BBVA reduced a high price for Compass – 18 times the brand new bank’s earnings – in advance of the latest subprime crisis erupted and you will plunged the new You.S. economy to your a-deep market meltdown. No matter if You.S. productivity at some point twice otherwise triple, they will not be extremely fun by the highest admission price paid for Compass, claims Antonio Ramirez, a great London-mainly based security analyst whom talks about Foreign language financial institutions getting Keefe, Bruyette & Trees.
Garcia Meyer defends the deal unapologetically and you can claims you to definitely BBVA is building on long haul. You expect to expend a very high price for an initial strategic resource within the a unique sector, he states.
BBVA has its own roots in the Spain’s Basque country. It had been created by the fresh new 1988 merger of Banco de Bilbao and you may Banco de Vizcaya. From inside the 1999, BBV extra yet another letter so you’re able to their term into purchase away from Argentaria, a great conglomerate away from former state-possessed finance companies oriented by the Francisco (Paco) Gonzalez, whom became president and you will chief executive out of BBVA. Lower than Gonzalez, BBVA, such the large Foreign language competition, Banco Santander, has been notable to possess a persistent run shopping financial, strict risk management additionally the current i . t.
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