Spain's Socialist leader Sanchez resigns after losing party vote - source

MADRID (Reuters) - The leader of Spain's Socialist party, Pedro Sanchez, resigned on Saturday after losing a party assembly vote, a party source told Reuters. The party's members had met on Saturday to decide whether to oust Sanchez, a step which could pave the way for the formation of a new government and end a nine-month political deadlock. Sanchez has led a stand-off with acting Prime Minister Mariano Rajoy's conservative People's Party (PP), which won the most votes but fell short of a majority in two inconclusive elections, and the dispute has frustrated attempts to form a government. (Reporting by Blanca Rodriguez, writing by Angus Berwick; Editing by Julien Toyer)