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Bankia issuance challenged

MADRID | By J.P. Marín Arrese | The Spanish Justice Department has launched a thorough investigation into the accounts which were submitted prior to the original BANKIA share issuance back in 2011. Experts from the Bank of Spain have delivered a devastating report implying these accounts did not provide a fair elucidation of the balance sheet. Should the final ruling follow that line, it could open the way for multi-billion euro claims from investors. Even though BANKIA has announced it can cope with such losses, with taxpayers footing two-thirds of the bill, the impact on Spanish financial market credibility could wreak havoc.

Spanish Bankia’s good results irritate non rescued banks

MADRID | By Francisco López | For a few, Bankia has quickly accomplished the miracle of the loaves and fish thanks to a faultless management. For many others, the bank achieved to improve its results in the last two years “thanks to the King’s gunpowder” – an old Spanish idiom meaning one takes advantages of others’ resources but doesn’t value them –. Taxpayers paid €22.4bn, an amount far higher than the lender’s financial gap, which has given back a tiny amount so far. At least, it has overhauled its budget.

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Market chatter: Pharma romance, Apple historic bond sale and much more

MADRID | By Jaime Santisteban |  M&A is getting really hot: Pfizer and AstraZeneca are forging the largest all-time merger in the pharmaceutical sector for $101bn, an operation that is stirring up investors. Apple turned to the bond market to fund its capital repurchase program again (it did the same one year ago). A 17bn blockbuster corporate bond debt sale that could the 2nd largest in History.

Today’s market chatter in Spain

MADRID | By Jaime Santisteban | After the storm always comes the calm, and the dividend. Bankia’s Chairman José Ignacio Goirigolzarri revealed in the General Shareholders Assembly on Friday when first dividend will be distributed, probably in 2015. Restructuring plan (in record-breaking time) prevented the bank from doing so in 2014 and 2014. Reward wouldn’t just benefit small stockholders but also the State, that would get back part of the €22.4bn disbursed for BFA-Bankia bailout. 

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Spain banking sector, 4th in EU’s financial support; UK is first

MADRID | By Julia Pastor | The UK is the European country which has given more financial support to its banking sector with €82.000 millions since 2008, followed by Germany (€64.000 millions), Ireland with €63.000 and Spain with €60.000, according to an European Comission’s report.