Date: Thursday 28 Jun 2012
Spain's Fund for Orderly Bank Restructuring (FROB) has confirmed acquiring 100 per cent control over Bankia's parent company Banco Financiero y de Ahorros (BFA) after converting its preferred shares into common shares as HSBC, Credit Agricole, and Rothschild conducted an independent evaluation that calculated a 13.635bn euro hole in its finances.
Spain's complete ownership of BFA effectively gives the country an indirect 45% stake of Bankia.
Spain will guarantee liquidity in the amount of €19bn for Bankia as was planned. Including the conversion of €4.465bn of preferred shares into common equity, Bankia will receive the €23.465bn that the new management team has requested in order to recapitalise the entity.
The bank must now present a recapitalisation plan to the European Union within six months.
Following the announcement, Bankinter reiterated its 'sell' recommendation for Bankia.
In a separate matter, members of BFA's board resigned on Wednesday. Spanish daily El Pais reports that Bankia's new president Jose Ignacio Goirigolzarri, as the Spanish government's representative on the board, gave other board members the option to step down or be replaced.
or share it with one of these popular networks:
You are here: news