By Ambrose Evans-Pritchard – The forced rescue was ordered by premier Mariano Rajoy after auditors Deloitte refused to sign off the bank’s books, amid allegations of €3.5bn (£2.8bn) of inflated assets. Half of the bank’s €37bn of property exposure is deemed “problematic” by regulators.
The lender has asked for €4.5bn in loans, converting the cash into ordinary shares. The Spanish government holding 45pc of the bank in return. Bank of Spain has also demanded Bankia dispose of assets as part of the rescue. more> http://tinyurl.com/6oaj2fq
- Spain prepares to nationalise Bankia amid market turmoil (guardian.co.uk)
- Spanish govt takes over bank (nzherald.co.nz)
- The Spanish Bank Bailout Begins (zerohedge.com)
- Spain to outline help for banks (cbc.ca)