Economy
In reply to the discussion: STOCK MARKET WATCH -- Thursday, 10 May 2012 [View all]Eugene
(61,872 posts)Source: The Guardian
Spanish government rescues fourth largest lender, Bankia
Loans given to ailing bank will be converted into shares as jitters
drive Madrid stock market to eight-year low
Giles Tremlett in Madrid
guardian.co.uk, Thursday 10 May 2012
Spain's conservative government partly nationalised the country's fourth-largest bank, Bankia, after investors dumped Spanish bonds and stocks amid increasing worries about the country's banking sector.
Under the deal, 4.5bn (£3.6bn) in government loans given to Bankia over the past two years will be turned into shares in the group's parent company, the finance ministry said. That will give the state 45% of the shares and, effectively, full control.
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Bankia has more than 30bn of exposure to troubled loans to property developers and repossessed land and buildings.
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Read more: http://www.guardian.co.uk/business/2012/may/10/spanish-government-rescues-fourth-largest-bank-bankia