Micron Associates - Spain sets up ‘bad bank’ to buy toxic real estate
Alexis Summer
2012-09-30
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Bad bank is part of ambitious new banking law Spain’s conservative government promises will save ailing finance sector
Spain will inject emergency capital into the country’s biggest ailing bank, Bankia, as it puts into place reforms to allow loss-making banks to receive eurozone bailout money.
The move came after Bankia admitted losing more than €4bn (£3.168bn) in the first half year and as the conservative government of prime minister Mariano Rajoy delayed a decision on losses to be absorbed by small investors in bailed out banks.
Spain will inject emergency capital into the country’s biggest ailing bank, Bankia, as it puts into place reforms to allow loss-making banks to receive eurozone bailout money.
The move came after Bankia admitted losing more than €4bn (£3.168bn) in the first half year and as the conservative government of prime minister Mariano Rajoy delayed a decision on losses to be absorbed by small investors in bailed out banks.
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