Shares in nationalised Spanish banking giant Bankia slumped by twelve and a half percent on opening in Madrid. It followed the disclosure the bank has a negative equity of over four billion euros.
Shareholders have lost 80% of their investment since the 2011 flotation, and now face further losses according to an anonymous Bank of Spain source.
Bankia’s parent group BFA is in the red to the tune of over 10 billion. Combined the pair stand to get an 18 billion cash injection from the European Stability Mechanism.