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Spain sets up ‘bad bank’ to buy toxic real estate
Bad bank is
part of ambitious new banking law Spain’s conservative government promises will
save ailing finance sector.

Spain will inject emergency capital into the country’s biggest ailing bank,
Bankia, as it puts into place reforms to allow loss-making banks to receive
eurozone bailout money.

The move came
after Bankia admitted losing more than €4bn (£3.168bn) in the first half year
and as the conservative government of prime minister Mariano Rajoy delayed a
decision on losses to be absorbed by small investors in bailed out banks.

The Fund for the
Orderly Bank Restructurin (Frob) said Bankia’s restructuring plan should be
ready by October, allowing eurozone rescue money to arrive in November. “While
the restructuring process is completed, the Frob intends to inject capital

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Added: Nov-13-2012 Occurred On: Nov-13-2012
By: lhelmdarv
Tags: micron, associates, madrid, news
Location: Spain (load item map)
Views: 9653 | Comments: 9 | Votes: 0 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 2
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