Spanish bank’s shares suspended, bailout imminent
Trading in shares in Spain’s Bankia has been suspended in Madrid.
It asked them to be suspended ahead of a board meeting this afternoon to reformulate its accounts for 2011 and submit a plan to shore up its finances.
The bank is reported to be due to ask the government for a bailout of more than 15bn euros ($19bn; £12bn).
Bankia, which is Spain’s fourth-largest bank, was part-nationalised two weeks ago because of its problems with bad property debt.
Any extra government money would be on top of the 4.5bn euros in state loans that the government converted into shares in the group in the part-nationalisation process.
Shares in Bankia’s parent company Banco Financiero y de Ahorros (BFA) have also been suspended.
Bankia had to reassure its savers last week that their money was safe after a Spanish newspaper reported a run on the bank.
Bankia was created in 2010 from the merger of seven struggling regional savings banks. It holds 32bn euros in distressed property assets.