MADRID, Sept 22 Spanish savings bank Caja
Laboral said on Monday it held senior bonds from a Dutch
subsidiary of failed U.S. bank Lehman Brothers for 162 million
euros ($236.4 million).
The unlisted bank said it would have to set aside 40.7
million euros for the bonds, which it bought in 2004 to cover
possible long-term interest rate reductions.
In a statement, Laboral said it had ample insolvency funds
and the Lehman bonds would hit its results this year by "a sum
significantly less" than the 162 million euros.
"In any case, at the moment, it is difficult to estimate
exactly what the recovery percentage of the debt is," said the
"There is no other exposure to Lehman Brothers in any other
financial instrument, so none of our clients will be affected."
Last week, the Bank of Spain said the Lehman Brothers
LEHMQ.PK failure will not hit Spanish banks badly
According to different press reports, Spanish banks and
financial firms hold no more than 500 million euros worth of
Lehman debt, a tiny chunk of about 270 billion euros in
investments managed by the country's financial sector.
Spain's No.1 bank Santander (SAN.MC) has said it had 11
million euros of direct exposure to the failed investment bank
[ID:nLF277245] and a further 44.6 million euros through
The second largest bank, BBVA (BBVA.MC), has 86 million
invested in Lehman through its funds, according to stock market
records, out of total investments valued at about 16 billion
Spanish savings bank Bancaja last week said its clients had
invested 13 million euros in Lehman through five funds.
(Reporting by Sarah Morris; Editing by Jon Loades-Carter)