Reprinted with permission from the BBC (bbc.co.uk)
Pre-Reading Questions: Keep a look out for these details when reading! Then, after you’ve read, fill in the answers.
What is the name of the bank that CaixaBank bought to secure this title?
Which bank has a majority stake in CaixaBank, and how large is this stake?
What is the economic context of this?
Reading Comprehension Questions: Now that you’ve read the piece, answer these questions!
What has the government done to make mergers like this possible?
They have amended the laws on merging banks
They are offering cash-incentives for these mergers
They are threatening unmerged banks with legal penalties
They are enacting laws that force smaller banks to merge with larger banks
With the merger completed, CaixaBank will be the largest in all BUT which of the following regions?
Galicia
Catalonia
Andalusia
Canary Islands
Why does the bank say this merger is necessary?
Because they are desperate for money
They see it as a way to stabilize Spain’s shaky economy
To allow Spain to compete with other countries
To prevent the closing of the bank and thus prevent massive layoffs
What are the current government’s projections for 2012?
They plan to increase the GPD of Spain by 8.51%
They plan to increase the employment rate by 2%
They plan to decrease the unemployment rate by 5.3%
They plan to cut the national deficit down by 5.3%
What is significant about Spain’s unemployment rate?
There is nothing significant about Spain’s unemployment rate
It is the lower in the European Union
It is the highest in Europe
Less than 1% of Spain’s workers are unemployed
Discussion Questions: For the following, find a piece of evidence within the story and use it to support your answer. Answers should be in two to four sentences.
Why would many workers be unhappy with this decision to consolidate two of the country’s largest banks?
What is significant about Spain’s attempts to generate more money?
Vocabulary: Define the following words using context clues. Explain how you arrived at the definition from the surrounding information
