Showing results for tags 'bankia'.
Shares in crisis-ridden Spanish bank Bankia plunged again as details of a public rescue exposed the extent of its problems. Shares fell 25pc to 41 euro cents in Madrid after the bank and its parent company BFA said it had received almost €18bn (£15bn) to bolster its balance sheet. The bailout was funded by a eurozone rescue loan after the region’s members were forced to step in when it became clear Spain alone could not deal with the crisis facing its lenders. The rescue will dilute the value of Bankia’s existing shares, involving the conversion of €10.7bn of “contingent convertible bond
Spain is to overhaul its stricken banking sector after European Union regulators approved restructuring plans, as nationalised Bankia said that it would cut 6,000 jobs and report a loss of around €19bn this year. Bankia, whose shares were suspended from trading on Wednesday by regulators, said that it would cut 6,000 jobs, or around 28pc of its staff, by 2015 as it tried to stem losses. The bank said it intended to return to profit in 2013, but warned that it expected to report a loss of €19bn this year. Bankia will also close 1,100 branches as part of the restructuring. Earlier, t