ECB Said to Push Bankia Losses as Spain Purges Toxic Assets
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European authorities are pushing Bankia group to impose losses on junior debt holders as Spain purges a banking system clogged with about 180 billion euros ($234 billion) of bad real estate assets, people familiar with the talks said.
The European Central Bank and European Commission want investors including holders of preference shares to swap their securities for new stock to reduce the cost to the taxpayer, according to two people who asked not to be named because the discussions are private. Profit at Banco Santander SA, Spain’s biggest lender, slumped in the first nine months as it took a