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BREAKING NEWS

Wednesday, 6 June 2012

Spain launches investigation into Bankia management


21:02 |

Eduardo Torres-Dulce, Spain’s attorney general, said yesterday(WED) he had ordered the country’s anti-corruption unit to investigate whether there were grounds to take “penal” action against the management of the bank. The investigation comes as public anger over the running of Bankia grows as the revelation of the scale of problems at the lender has seen shareholders lose almost all their money. Bankia was created through the merger of seven smaller Spanish regional lending banks and was floated on the stock market last July. However, as the problems at the bank have become apparent, the shares have lost more than 70pc of their value this year and currently trade at just over €1. The Spanish authorities are currently looking at how to fund the nationalisation of Bankia after it asked for the €19bn bail-out on May 25. The bank is expected to put forward its own proposal on its rescue next week.


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