Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

France's top consumer group sues Internet giants

Read more

WEB NEWS

Web users pay tribute to South Korea ferry victims

Read more

AFRICA NEWS

A landslide victory for the 'invisible candidate' in Algeria's Presidential polls

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014 (part 2)

Read more

MEDIAWATCH

Presidential adviser resigns over "shoe-shine scandal"

Read more

#THE 51%

Breaking stereotypes

Read more

#TECH 24

Galaxy S5 v. HTC One (M8): Which is the right one for you?

Read more

FRANCE IN FOCUS

New PM Manuel Valls outlines priorities

Read more

  • Why Syria’s cash-strapped jihadists let hostages go

    Read more

  • Video: Ukraine separatist crisis overshadows Easter celebrations

    Read more

  • The Great War's unsung four-legged heroes

    Read more

  • Divers begin pulling bodies from sunken South Korean ferry

    Read more

  • Ukraine rebels call for Russian troops after deadly clash

    Read more

  • UK’s Hamilton cruises to victory at Chinese Grand Prix

    Read more

  • Freed French journalists arrive home after Syria ordeal

    Read more

  • Syria’s Assad visits recaptured Christian town at Easter

    Read more

  • In pictures: French kite festival takes flight

    Read more

  • Le Pen’s National Front fail to woo Britain’s Eurosceptics

    Read more

  • PSG clinch fourth League Cup title after beating Lyon

    Read more

  • Militants kill Algerian soldiers in deadly ambush

    Read more

  • Scores killed in South Sudan cattle raid

    Read more

  • VIDEO: Anti-Semitic leaflets in Eastern Ukraine condemned

    Read more

  • Bouteflika, the ghost president

    Read more

  • Does Valls’ upcoming Vatican trip violate French secularism?

    Read more

  • Ukraine separatists say ‘not bound’ by Geneva deal

    Read more

  • Abel Ferrara’s hotly awaited DSK film to premiere on web

    Read more

  • Obama signs bill to block controversial Iran diplomat from UN post

    Read more

  • Astronomers discover Earth-like planet that could support life

    Read more

  • In pictures: Iranian woman pardons son’s killer at the gallows

    Read more

Europe

Bankia shares drop after record bailout plea

©

Text by News Wires

Latest update : 2012-05-28

Shares in Spanish lender Bankia dropped 28.66% on the Madrid stock market Monday, after the bank sought a record 19 billion euro bailout from the state - the largest in Spanish banking history.

AFP - Spain's troubled lender Bankia plummeted 28.66 percent on the Madrid stock market on Monday after the bank sought a record 19-billion-euro ($24-billion) state bailout.

Bankia shares dived 45 cents to 1.12 euros when trading was resumed after a suspension.

The bank has requested the biggest bailout in Spanish banking history from the state, which had already injected 4.5 billion euros this month.

Shares in the bank, formed in 2010 from a merger of seven troubled regional savings banks, have lost more than 70 percent of their value since listing in July 2011.

Spanish banks are at the heart of market fears that Spain, the eurozone's fourth-largest economy, could be forced to seek an international financial bailout.

Bankia has a vast exposure to the collapsed real estate sector, with central bank figures showing it held problematic property-related assets of more than 30 billion euros at the end of 2011.

Under the bailout, Bankia's parent group, the Banco Financiero de Ahorros (BFA), is seeking 19 billion euros in extra capital from the state-backed Fund for Orderly Bank Restructuring (FROB).

Bankia then plans to launch its own 12-billion-euro capital increase, to be underwritten by its parent group.

Economy Minister Luis de Guindos last week estimated that Bankia would need around seven billion euros but said his government would provide whatever funds were needed.

The state took a controlling 45-percent stake in Bankia this month by converting an existing 4.465-billion-euro loan to its parent group BFA into equity.

Bankia shares had been suspended from trading on Friday ahead of the board meeting.

Board members also agreed to revised the 2011 results to show a net loss of 2.979 billion euros caused by write-downs on its loan portfolio instead of a net profit of 309 million euros.

Prime Minister Mariano Rajoy's conservative government this month instructed Spain's banks to set aside an extra 30 billion euros in 2012 in case property-related loans go bad, on top of 53.8 billion euros required under reforms enacted in February.

Date created : 2012-05-28

  • SPAIN

    Spain's Bankia requests multibillion-euro bailout

    Read more

  • FINANCE

    Spain's stock market halts trading of Bankia shares

    Read more

Comments

COMMENT(S)