25.05.2012
By Simon Miller
Spanish bank Bankia has had its shares suspended this morning as it looks for €15bn (£12bn) in recapitalisation.
Spain's stock market regulator CNMV said trading had been suspended "due to circumstances that may affect the normal share trading".
The part-nationalised bank is expected to ask for €15bn following its failure to cover the losses stemming from the 2008 property cash and would come on top of the €4.5bn in state loans that the government converted into equity earlier this month.
The bank was struggling amid allegations of €3.5bn of inflated assets and half of its €37bn property exposure was considered problematic by regulators.
On Wednesday, the government said it would provide any capital outlined in the new management team's recapitalisation plan through the state-backed restructuring fund, the FROB worth at least €9bn to cover the writedowns on real estate assets.
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