Spanish Court Orders Criminal Inquiry Into Oversight of Bankia I.P.O.

by Dramelin 7:30 AM 0 comments

Before becoming chairman of Bankia, Mr. Rato was Spain?s finance minister and also served as managing director of the International Monetary Fund. Mr. Rato and other former Bankia directors are also facing trial on accusations they used corporate credit cards for personal purchases. Bankia?s bailout required just over 22 billion euros after the bank posted the largest loss in Spanish corporate history in 2012. PhotoMADRID ? Spain?s national court on Monday ordered a criminal inquiry into whether a former governor of the country?s central bank and seven other regulatory officials knowingly ignored financial problems at Bankia, the giant savings bank whose near collapse prompted Spain?s banking bailout in 2012. The court said in a statement that there was sufficient evidence to indict the officials in connection with Bankia?s initial public offering in 2011, a year before the bank?s forced nationalization.