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Daily Digit: Spain's Bankia shares fall

Thursday, 27 Dec, 2012 - 01:14

Dec.27 - Bankia shares fall 12.5 percent after the bank rescue fund discloses the nationalised Spanish lender bank has a negative valuation of 4.2 billion euro. Joanna Partridge reports

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12 and a half percent is today's Daily Digit in Europe - the amount Bankia shares fell as Spain's stock market re-opened after Christmas. The slide follows new revelations from Spain's bank rescue fund. It gave the nationalised lender a negative valuation of 4.2 billion euros and its parent group BFA an even worse negative value of 10.4 billion euros. Spain sought a 100 billion euro credit line from the euro zone in June to recapitalise its banking sector, which was hit hard by a property crash. The EU said it could inject 37 billion euros into four of its lenders. A condition of that is cutting thousands of jobs and transferring toxic assets into a so-called bad bank. Bankia is expected to get an 18 billion euro chunk of the loan by the end of the year. It's hoped that will clear the lender's slate. Shareholders have already lost 80 percent of their investment since the bank's flotation in 2011. Around 350,000 mostly small investors will lose all their money. They were encouraged to invest by aggressive marketing - and are angry the flotation was allowed to go ahead when the bank was already in dire straits.

Daily Digit: Spain's Bankia shares fall

Thursday, 27 Dec, 2012 - 01:14

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