Audit Shows Spain's Bankia Short 3.5 Billion Euros; PP says "We Must Help Bankia, It Has Deposits for 10% of GDP"
Courtesy of Google Translate here are a pair of articles on Bankia, Spain's third largest bank.
Audit Shows Spain's Bankia Short 3.5 Billion Euros
Inquiring minds looking for a reason for the jump in Spanish bond yields to 6.08% note Bankia audit confirms that the accounts of 2011 are inflated
The shareholders of Bankia known in the coming days that bank accounts are overstated. This was unveiled today the online edition of The World that uncovers the traditional audit Bankia, Deloitte, has detected that the accounts of 2011 in the matrix of the group are inflated.
Sources have confirmed to elmundo.es Bankia that the auditor has filed a dissent in an overstatement of accounts Financial Savings Bank (BFA).
This is the Bankia matrix consisting mainly of Bancaja and Caja Madrid and in 2010 received a loan from the not yet returned by value of 4,500 million euros.
"These sources confirmed a report in the newspaper El País notes that the overvaluation would be 3,500 million, an amount that is considered impossible to obtain immediately by the financial institution without outside help," according to The Mundo.es.
The Deloitte report has not been made public, although the accounts were presented on Friday the market.
A study by Swiss bank UBS has had access to elmundo.es, notes that BFA was not only participating in Bankia overvalued by at least 70% above market value, but also several portfolio companies.
Looking for a reason for that spike in Spanish sovereign bond yields today?
Now you have it.
PP Pleads for Bankia Help
Please consider PP says "We must help Bankia, has deposits for 10% of GDP"
PP spokesman in Congress, Alfonso Alonso, said that "no choice" to find a solution to the problems facing Bankia capital, recalling that the bank has on its balance sheet with deposits amounting to about 10 % of GDP.
Alonso, who called it "really complicated" the situation in the sector, defended a "second phase" of the financial reform to help organizations meet the sanitation required, which rises to 54,000 million euros for the whole sector . In this regard, said that the PP will try to avoid socializing losses Bankia, in order to gain "credibility and confidence." He also ruled that the cut of 10,000 million euros in health and education is to allocate to inject capital into this entity. "There are vessels," settled
IBEX Down 2.77%
News was unsettling to the Spanish IBEX Stock Market which fell 194 points, 2.77%, to 6,812.70, not quite a new low.
For more on Bankia, please consider Spain to Spend €7bn-€10bn (It Doesn't Have), Bailing Out Bankia, the Nation's 3rd Largest Bank; Liar, Liar Pants on Fire
Mike "Mish" Shedlock
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