The broader context though is that this is a bank facing enormous real estate loan provisions relative to its income and whose parent BFA still has not presented audited results for 2011 (it’s supposed to by the end of the month).
Distracting from Spain’s announcement of independent loan-loss reviews for its banks, just a bit.
UPDATE: On Thursday morning, Bankia released this statement. Our Spanish is a bit rusty, but here’s our translation:
Since last Wednesday the 9th, Bankia has had a new management team, with accredited experience in the finance sector. “The depositors of Bankia can be absolutely reassured about the security of their savings that they have placed with the bank”, as just yesterday the bank’s president, Jose Ignacio Goirigolzarri, told the bank’s three hundred principal executives.
In the last few weeks, the operation of [activity within?] the bank has taken place within the normal channels of its branch network.* The change in deposits in the first half of May has a mostly seasonal character. The change also indicates that the balance of deposits shouldn’t change meaningfully in the next few days.
The Economy Minister already said on May 9th that “no creditor in the entity [Bankia], including depositors, will be harmed by the change in shareholders [ownership?]. He also mentioned that the government will provide the capital “necessary for sufficient provisioning.”
In the same way, the Bank of Spain said on May 9th that “Bankia is a solvent entity that continues to function completely normally and its clients and depositors have no reason to be worried.”
Questions raised over Bankia creation – FT