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Spanish bank crisis: sobering news

08/05/2012

An email received early this morning from the Financial Times brought the gravity of the liquidity crisis into stark relief. The first paragraph read:

Spain is planning a state bail-out of Bankia, the country’s third
biggest bank by assets, in a move likely to involve the injection of
billions of euros of public money into the troubled lender, the FT
reports. Soon after the news broke, Rodrigo Rato, Bankia’s executive
chairman and a former International Monetary Fund managing director,
resigned from the bank. Local press reports suggest up to €10 could
be injected, says the WSJ.

Yes, it’s so bad that just €10 could put your hands on the levers of power.

Edit: I’ve just received the 11am update email, and somebody at Number One Southwark Bridge has woken up and corrected it. Too late, ha!

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