Spanish Supreme Court orders Bankia to pay out after ‘serious inaccuracies’

Two plaintiffs win case that could affect thousands of preferred share investors

LAST UPDATED: 27 Jan, 2016 @ 16:53
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THE Supreme Court has demanded Bankia repay two small buyers in a ruling that could pave the way for thousands more to lodge claims.

CHARGED: Former Spanish deputy prime minister Rodrigo Rato
UNDER FIRE: Former Spanish deputy prime minister Rodrigo Rato

The ruling was made following ‘serious inaccuracies’ in leaflets advertising the bank’s stock market launch in 2011.

The two investors ploughed in €9,997 and €20,868 to the bank, which received the bulk of a €22 billion government bailout in 2012.

The move means thousands of customers who bought the preferred shares could be in line for compensation.

Bankia is believed to have set aside €1.9 billion to cover expected payouts.

The bank was bailed out by the government less than a year after it floated on the stock exchange.

It was formed when seven caja – or savings banks – merged, including Caja Madrid.

The banks were heavily exposed to the Spanish real estate market, which collapsed following the 2008 financial crash.

Former PP representative Rodrigo Rato was head of both Caja Madrid and Bankia.

He is currently facing four-and-a-half years in prison over corruption allegations relating to his spells in charge of both financial institutions.

 

 

 



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2 COMMENTS

  1. The bell and the candle too for good measure and then burn him at the stake, together with all his no-good partners in crime and all who aided and abetted him or just looked the other way!

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