Spanish bank share prices fell sharply on fears that domestic lenders could be forced to pay billions of euros in compensation to customers whose mortgage contracts were found to have illegal rate floors.

Shares in Banco Sabadell, Banco Popular, CaixaBank and Bankia all dropped more than 2.5 per cent on Tuesday after the country’s largest newspaper El País revealed that Brussels has recommended to the court that customers be repaid in full. While it is not clear whether the court will follow the recommendation, the document is the latest blow from the bursting of the Spanish property bubble in 2008.

https://www.ft.com/content/cf751f40-7ca7-11e5-a1fe-567b37f80b64