Spain’s Bankia-Led Bailout Won’t Spell End of Bank Troubles
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Spain’s 41 billion-euro ($54 billion) rescue of lenders, prompted by record losses at Bankia, won’t spell the end of troubles for the nation’s financial industry as the economy remains mired in recession.
The lender that received the biggest Spanish bailout said in November it plans to cut about 6,000 jobs and 50 billion euros of assets as it targets a return to a profit this year after an estimated record loss of 19 billion euros in 2012. Bankia will report earnings tomorrow before the stock market opens in Madrid.