The government helps Bankia

7 savings banks merged approx. Eighteen months ago, to become Spain’s third largest bank under the name of Bankia. The two biggest savings banks in the merger was Caja Madrid and Bancaja. Bankia has fought hard from the beginning due to a bad portfolio.

The government has now transferred 10 billion to the bank inder to help with lack of liquidity.For help achieved 45% of the bank’s shares, and the government takes control of the bank. It was the bank itself, which has approached the government for help.

What will happen now, besides the state has taken over management is uncertain. There have been rumors of other banks interest in buying Bankia, but it has only been at the rumors.No customers have lost their deposits. The only people who have suffered a loss is shareholders in the bank.

The whole process has been supported by both government and opposition in Spain.