By Simon Miller

Spanish bank Bankia has had its shares suspended this morning as it looks for €15bn (£12bn) in recapitalisation.

Spain's stock market regulator CNMV said trading had been suspended "due to circumstances that may affect the normal share trading".

The part-nationalised bank is expected to ask for €15bn following its failure to cover the losses stemming from the 2008 property cash and would come on top of the €4.5bn in state loans that the government converted into equity earlier this month.

The bank was struggling amid allegations of €3.5bn of inflated assets and half of its €37bn property exposure was considered problematic by regulators.

On Wednesday, the government said it would provide any capital outlined in the new management team's recapitalisation plan through the state-backed restructuring fund, the FROB worth at least €9bn to cover the writedowns on real estate assets.

Home     More News

Financial Risks Today Beta Banner

Other stories you may find of interest:

Spain orders banks to find €30bn
Spanish banks will have to find another €30bn (£24bn) to cover their loan books, the government ordered this afternoon.

Bankia calls on Spider-Man as depositors flee Spanish banks
Money is leaving Spain at the fastest rate since records began according to data from the Spanish central bank.

This website is a part of Perspective Publishing Limited, registered in England No 2876166.