Share trading in Spain’s Bankia has been suspended over fears that it may be about to ask the government for a €15 billion bailout.
The news follows a recent “bailout” which saw the Spanish government put €4.5 billion in to the bank which was then converted to shares making the state a major shareholder, essentially nationalising the struggling bank.
A board meeting is planned for this afternoon to attempt to secure the bank which is Spain’s fourth largest.
Bankia is drowning under €32 billion of toxic debt from property loans and although they are not the only ones, most other Spanish banks don’t seem to be as badly affected.
Last week the bank was forced to speak out to reassure it’s customers that things would be fixed following reports that customers had rushed to withdraw their cash. According to reports up to €1 billion euros was withdrawn resulting in a 30% drop in the banks share price.
Bad management, irresponsible lending… I say let it die.