BBVA, Sabadell End Takeover Talks Over Price Disagreement

The video discusses BBVA's financial position after selling its US units, highlighting the potential for dividends and capital returns if the ECB allows it. The impact of COVID on the banking sector's trading and share prices is examined, noting the historical lows and the challenge of determining fair value. The ECB's cautious approach to allowing banks to resume dividend payments is explored, with a focus on well-capitalized banks. The concept of 'bad will' in M&A is introduced, emphasizing the potential for acquiring banks at a good deal but with restrictions on immediate shareholder returns.

In what ways might the current market conditions affect the valuation of banks?

What does the term 'bad will' refer to in the context of bank valuations?