FINANCIAL CRISIS

Socialists give Bankia takeover guarded support

PP blames Bank of Spain governor for pushing for 2010 Caja Madrid merger

Opposition suggests budget cuts will be negotiated

The opposition Socialists gave cautionary support Thursday to the nationalization of troubled lender Bankia, which was taken over by the government late Wednesday. Alfredo Pérez Rubalcaba, the Socialist leader, issued a warning to Prime Minister Mariano Rajoy, telling him “to act responsibly” to avoid the bank’s “collapse.”

“The Socialists support the government entering into Bankia but the state will have to pull out at some point. And we need guarantees that there are no losses for the government, and that all the money injected will be recovered, hopefully with profits,” Rubalcaba said.

Meanwhile, Popular Party (PP) officials were blaming the Bank of Spain — specifically its governor Miguel Ángel Fernández Ordóñez — for pressuring Caja Madrid to merge with Bancaja as part of the multi-lender fusion in June 2010 that formed Bankia.

Vicente Martínez Pujalte, the PP spokesman of the economic commission in Congress, said Bank of Spain “obliged” Rodrigo Rato, the former president of Bankia, who resigned on Monday, to merge with Bancaja after showing him financial information “that probably wasn’t correct” and without any plan “to protect assets,” news agency Efe reported.

The Cabinet is expected to pass a reform today aimed at shoring up Spain’s ailing banking sector.

María Dolores de Cospedal, the Popular Party (PP) secretary general and Castilla-La Mancha regional premier, didn’t want to publicly blame anyone for Bankia’s failures, but defended the takeover as the best option for customers and investors.

Banking sources told EL PAÍS that independent experts will set the economic conditions for the government’s takeover, which still has to be approved by Spanish and European financial regulatory bodies, including the percentage stake the state will end up taking in Bankia.

At press time, Socialist leaders were meeting with officials at the Economy Ministry over the matter. Earlier in the day, Rubalcaba insinuated that he would demand the government negotiate its proposed budget cuts in health and education in exchange for the Socialist support of Bankia’s nationalization.

Para poder comentar debes estar registrado en Eskup y haber iniciado sesión

Darse de alta ¿Por qué darse de alta?

Otras noticias

Últimas noticias

Ver todo el día

Obama amplía la misión militar en Afganistán más allá de 2015

Las tropas estadounidenses podrán participar también en acciones contra los talibanes

Chavismo y Podemos, Punto Fijo y Moncloa

Ni el chavismo ni Podemos llegaron de Marte, son producto de profundas crisis democráticas

El Sismògraf convertirá Olot en el nuevo epicentro de la danza catalana

El festival mudará a mercado uniendo profesionales, programadores y público

El puzzle de Guanyem toma forma

La CUP-TPM se desmarca de la alianza y presentará candidatura propia

LATIN AMERICA

Mexicans say “enough is enough” at huge protest rally

Tens of thousands from all walks of life call for changes to prevent a repeat of Iguala missing students case

Venezuela’s Maduro creates major anti-corruption body

The president’s new organization will have the power to investigate and sanction corrupt individuals

Colombia and FARC negotiate hostage release to unblock stalled peace talks

Army general and four others due for imminent release, say guarantors

Mexico’s First Lady to sell her controversial luxury home

Former soap star Angélica Rivera defends President Peña Nieto’s “integrity” and denies any conflict of interest

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana