Deals
Bankia’s Writedowns Cast Doubts on Spain’s Bank Estimates
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Spain’s two-week effort to overhaul its lenders and estimate for what it will cost taxpayers may already look out of date.
Economy Minister Luis de Guindos said May 11 that a law tightening provisioning rules, his second in three months, would require public funds of less than 15 billion euros ($19 billion). BFA-Bankia, the bank nationalized the same week, said on May 25 it was taking 8.5 billion euros of provisions on top of those demanded by the two decrees, as it sought a 19 billion-euro state bailout. Bankia shares fell as much as 29 percent in Madrid trading today.