Before arguing the title of this article, which aims to explain why BBVA should abandon its takeover bid for Banco Sabadell, I want to emphasize two premises that are by no means minor: the first is that the Basque-based bank has every right to try to buy another bank, but it can only overthrow the legitimate market—a competitor—if the latter agrees to be bought. The second premise is that it is the owners of Banco Sabadell, and only they, who have the power to sell or reject the operation, in order to achieve their objective. These conditions These are added to those approved by the Spanish competition authority just a few weeks ago.
I won't go into the content of the imposed conditions, especially since this article is not primarily aimed at experts or knowledgeable people, but at the general public. Therefore, I'll leave aside technicalities that are accessible to a few to focus on concepts that almost everyone can understand. The main point of these concepts is that every economic good must be associated with a social good. And this will increasingly have to be the case.
In the case at hand, it's not clear that economic good exists. On the other hand, it's very evident that there is no social good. Let me explain: some people might argue that Europe needs fewer and larger banks to be able to compete on better terms. Others might think that bank mergers should be carried out between financial institutions from different countries, and not between those from the same country. Still others might argue that mergers or concentrations aren't necessary to avoid financial oligopolies that restrict free competition. All of this would refer to economic reasons, and every opinion can have its supporters and detractors. However, when we begin to assess the social good, which goes beyond purely economic positions, the nuances lose their significance, and we must go to the core of the impacts on citizens.
If we were to use the opposing reactions to calculate the social impact of the takeover as a thermometer, we would see that the sum of them all is overwhelming. Let's look at the list of those who have spoken out against it: the two governments most directly affected, the Catalan and the central governments; both parliaments, the Catalan and the Spanish, with large majorities against it, especially in the Catalan case; the most representative business organizations, both large and small and medium-sized enterprises; the unions; most political parties; and organizations within the community, some of which have a powerful voice in our society. In other words, a whole network of organizations representing citizens or very significant sectors of society openly reject BBVA's control of Sabadell.
The key question, then, is whether a bank the size of BBVA can ignore an outcry of the magnitude described above that opposes its claims. My answer is no. It cannot, but above all, it should not. Its ambitions may be legitimate, but when social rejection is so overwhelming, it must know how to stop and announce its withdrawal. A financial institution the size of BBVA, no matter how private, must understand that its role far exceeds mere economic interest or the pursuit of greater profit. In other words, and so that it is understood without beating around the bush: you cannot stand by and bail out financial institutions with public money when things are going badly, with the argument that a large bank cannot fail because of its knock-on effect on the economy, and then ignore that social dimension when it suits you. You have to know how to navigate the green and the ripe. BBVA is currently facing tough times, but not so long ago it faced tough times, when it was able to secure a substantial share of the financial pie represented by the liquidation of the savings bank system in our country.
It's time to retreat. Not for lack of legitimacy, but for the absence of a social good. Continuing with the takeover bid is tantamount to disregarding the behavior of governments, parliaments, and representative bodies. In Catalonia, the rejection is tangible, resounding, and resounding. Sometimes you have to know how to take a step back in order to later take a step forward, when the circumstances are propitious.
