Spanish retail bank, Bankia, will set up a ‘bad bank’ for impaired assets to help with its stock market listing later this year, Financial Times reports. The newly formed bank’s managers are looking to list Bankia with assets of €275 billion and a net book value of €12 billion.
They will retain repossessed land and other impaired assets in the existing legal entity, called Banco Financiero y de Ahorros. The Fund for Orderly Bank Restructuring is expected to commit most of the new capital.
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