Going by the reports of The Wall Street Journal, Spaniards, who had to face Lost Money on bonds, are protesting against banks like novagalicia for misguiding them about the complex securities.
Every day, people are gathering in huge numbers, in front of the bank, to mourn their loss and in quest of justice. They want the banks to return their money. The customers are targeting Branch Managers who influenced them to invest in complex securities. The Branch Managers told them that complex securities were safe as deposits. On the other hand, banks like novagalicia that offered high yielding bonds have apologized officially and have also made a promise not to sell complex securities to the Spaniards.
When economic crisis hit Spain in 2010, the value of complex securities fell. This had a direct effect on the invested money of the customers.
Complex securities appeared profitable. As compared to regular deposits, preferred shares carry high interests. The banks told the customers that they could sell the shares anytime, without paying any penalty. The banking crisis that hit in 2010 reduced the value of the securities to such an extent, securities were impossible to resale.
Presently, protests are on against banks like novagalicia in several parts of Spain. In the last two months, there have been several protests. Now the novagalicia arbitration proceedings have been started with customers who propose that they were misguided into buying the product and lost money.
We believe that everyone deserves a properly developed strategy for financial safety.
Chief Market Analyst, ITM Trading