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Former Spain central bank chief investigated for failed IPO
Key Excerpts from Article on Website of Seattle times/Associated Press
Posted: April 30th, 2017
http://www.seattletimes.com/business/former-spain-central-ba...
Spains National Court is summoning the former heads of Spains central bank and the stock market watchdog to be questioned for failing to stop the disastrous flotation of a savings bank that had to be bailed out. Eight officials, including former Bank of Spain governor Miguel Angel Fernandez Ordonez and Julio Seguro, the former president of market regulator CNMV, allegedly failed to stop Bankias listing in 2011 despite repeated warnings the bank was unviable, according to an investigation led by the courts magistrates. Created by merging the assets of seven struggling Spanish banks, Bankia offered shares in an initial public offering in July 2011 and initially reported a profit for the year of 309 million euro ($327 million.) Months later, it amended its statements to show a 3 billion euro loss. The lender was nationalized in 2012 after a rescue that cost Spanish taxpayers around 22 billion euros ($23 billion). Former International Monetary Fund chief Rodrigo Rato stepped down as chairman of Bankia at the time of the IPO. Rato since has been investigated in separate, but related cases of alleged corruption. Internal central bank reports made clear the savings banks severe and growing problems of profitability, liquidity and solvency, a court order issued Monday stated.
Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.
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