6 Dec, 2014 @ 10:30
1 min read

Bankia produced rigged accounts to sell stocks to investors

STATE-owned lender Bankia have produced a series of error-strewn accounts to the judge ruling over the bank’s corruption probe.

The accounts relate back to the year 2011 – the year Bankia listed its shares – and according to a court report, they ‘do not comply with Bank of Spain norms’.

The lender reportedly used the rigged accounts to market and sell its stocks to investors.

The report slammed ‘the figures in their entirety’ claiming they presented a completely ‘inaccurate image’.

The report goes on to criticise ‘the awful quality of credit-risk monitoring’ and suggested Bankia’s auditor, Deloitte LLP, ‘should have detected the errors’ at the time.

Hundreds of thousands of small investors lost money after Bankia needed a massive bailout in 2012.

The investigation follows on from the back of the ‘magic’ cards expenses scandal which saw 86 former Bankia and Caja Madrid staff – including senior politicians and royal staff – accused of using tax free company credit cards.

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