Spain's 4th largest lender - Bankia - is set to be partially nationalized after the market...


Spain's 4th largest lender - Bankia - is set to be partially nationalized after the market closes today, according to a published report. The government will inject €4.465B into the bank, giving it about a 45% share. This action has been tipped for a number of days, but one wonders if it isn't the first in a string of bailouts. And the government is getting this money from where?

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Comments (7)
  • Tony Petroski
    , contributor
    Comments (6356) | Send Message
     
    "And the government is getting this money from where?"

     

    Update: Reuters is reporting that "Spain has been able to expand their credit line with Bankia, so the government has insured adequate funding through the first quarter of next year."
    9 May 2012, 09:55 AM Reply Like
  • Advill
    , contributor
    Comments (2321) | Send Message
     
    Money is coming from the same "bank" that US goverment....is it clear?, why do you surprise?
    9 May 2012, 10:06 AM Reply Like
  • Robin Hewitt
    , contributor
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    It's interesting that the more conservative the government, the more it seems to end up taking (finding itself forced to take?) socialist measures. Not sure what to make of that but it's interesting.
    9 May 2012, 12:34 PM Reply Like
  • The Delivery Guy
    , contributor
    Comments (193) | Send Message
     
    Um... not really, Spain and Greece have major Socialist parties, meanwhile Switzerland has shifted very Conservative and is only really feeling the pinch caused by its investments in its neighbors.
    9 May 2012, 12:53 PM Reply Like
  • Robin Hewitt
    , contributor
    Comments (5473) | Send Message
     
    You're misreading my comment Delivery Guy. Spain's conservative gov't, elected to supposedly lead the nation out of the wilderness using conservative principles is now finding itself in need of taking the socialist step of nationalizing its banks. Conservative groups in the U.S. often end up pushing for socialist measures as well after they find themselves in power for awhile. I find that interesting. It has nothing to do with what nations having overtly socialist parties may or may not do.
    9 May 2012, 01:27 PM Reply Like
  • Losing Paper While Gaining ...
    , contributor
    Comments (488) | Send Message
     
    With our current economic systems the governments are practically tied into the banks, no matter their political ideology.

     

    Banks need governments to keep fiat money in place, and governments need banks to sell their debt.

     

    The losers in all this? You and I.
    9 May 2012, 02:18 PM Reply Like
  • miguelrobles
    , contributor
    Comments (3) | Send Message
     
    Money was previously given to Bankia through the buy of co-co bonds by the government several months ago. The nationalization would consist on converting those co-co's to common shares. That would give the government the 45% of total shares.
    9 May 2012, 01:12 PM Reply Like
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