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Troubled Spanish lender Bankia is to be partly nationalised, the central bank has confirmed.
Bankia, which holds 32bn euros (£25.7bn) in distressed property assets and whose boss has resigned, will have a 4.47bn-euro loan by the Spanish bailout fund converted into shares.
The state fund will emerge with a stake in the bank of 45%.
Earlier, Spanish stocks fell by 3% and government bond yields rose above 6%, a level seen as unsustainable.
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http://www.bbc.co.uk/news/business-18014077
Who's next?
... and just for those who like to give the impression that 'greedy shareholders' are the root of all evil, overlooking the fact that they can and do lose money:
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"The partial nationalisation will be a controversial operation, because it will lead to huge losses for many thousands of Spanish investors, who bought shares in Bankia and provided it with loan capital when it was listed on the stock market last year."
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