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Spain's savings banks' culture of greed, cronyism and political meddling

Prosecutors, academics and regional parliaments begin to uncover rampant corruption at Spain's savings banks or cajas

Friday 8 June 2012 18.13 BST

Attempts to investigate Bankia, the country's fourth largest lender that absorbed a number of savings banks, have been blocked by the ruling People's party. Photograph:

As European taxpayers prepare to rescue Spain's ailing banks, anti-corruption prosecutors, academics and regional parliaments have begun to uncover a tale of greed, cronyism and political meddling that has brought many of the country's leading savings institutions to their knees.

With the fourth-biggest lender, Bankia, demanding €19bn (£15.4bn) and authorities now admitting a further €9bn is needed by two former savings banks – CatalunyaCaixa and Novagalicia – concern is focusing on both the mushrooming bill and the way banks have been run

Added: Jun-8-2012 
By: gemini
Regional News
Tags: euro, crisis
Location: Spain (load item map)
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