Seeking Alpha

Shareholders in Spain's Bankia will be essentially wiped out following the lender's...

Shareholders in Spain's Bankia will be essentially wiped out following the lender's restructuring. The bank - cobbled together in late 2010 from 7 teetering savings banks - went public in July 2011 with an aggressive campaign targeted to get the country's small savers to invest. The price of the stock is off 80% since.
Comments (3)
  • This is what bankruptcy means: the extinction of equity by bad debt.
    Spain created the illusion of prosperity via massive bad debt and consumed its future.
    Now, the future has arrived and is consuming the middle class and soon the polity itself.
    27 Dec 2012, 07:56 AM Reply Like
  • what.a.farce.

     

    the western financial system is in shambles.
    27 Dec 2012, 07:58 AM Reply Like
  • We've known that Bankia is an uninvestable stock since May 14, when it was announced that the company would need 4.72 billion EUR in new capital. Source:
    http://on.wsj.com/WJhLRb

     

    On September 29, the capital requirement increased to 24.743 billion EUR. Source: http://bloom.bg/UvdDFL

     

    So shareholders have already had plenty of warning, and plenty of opportunity to get out.
    27 Dec 2012, 08:00 AM Reply Like
DJIA (DIA) S&P 500 (SPY)