Bankia
| Bankia | |
|---|---|
|
|
| Country |
 Spain
|
| Seat | Madrid and Valencia |
| legal form | Corporation |
| ISIN | ES0113307021 |
| BIC | CAHMESMMXXX |
| founding | December 3, 2010 |
| Website | www.bankia.com |
| Business data | |
| Total assets | EUR 328 billion (2010) |
| Employee | 26,000 (2010) |
| management | |
| Board | * José Ignacio Goirigolzarri , President
|
Bankia is a Spanish savings bank that was created in December 2010 through the merger of seven Spanish banks. In May 2012 it was nationalized together with the parent company Banco Financiero y de Ahorros , which was founded at the same time . With total assets of 328 billion euros, it is the fourth largest bank in Spain.
Business areas
Bankia operates the retail , commercial banking, corporate finance, capital markets, asset management and retail banking sectors and offers a wide range of financial products and services. Bankia has an extensive network of branches in Spain and a presence in other European countries (Dublin, Lisbon, London, Milan, Munich, Paris, Porto, Warsaw and Vienna) and overseas (Miami, Beijing and Shanghai). The group has a large and diversified portfolio of business units with a value of 5.5 billion euros as of January 31, 2011.
Seat
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The bank has its headquarters and the address of the associated companies in Valencia and its operational headquarters in Madrid .
history
Foundation and IPO
The bank was founded on December 3, 2010. Bankia was born as a union of seven Spanish financial institutions, with a large presence in their fields. The merger of the seven banks was completed in just four months; the integration agreement was signed on July 30, 2010. The proportion of shares was as follows:
- 52.06% Caja Madrid
- 37.70% Bancaja
- 2.45% La Caja de Canarias
- 2.33% Caja de Ávila
- 2.11% Caixa Laietana
- 2.01% Caja Segovia
- 1.34% Caja Rioja
Bankia went public on July 20, 2011. The head of the new institute, Rodrigo Rato (ex-economics minister and ex-head of the International Monetary Fund) received a lot of public praise. Early elections were held in Spain on November 20, 2011. There was a change of government: the Zapatero II cabinet was replaced by the Rajoy cabinet . The new economy minister Luis de Guindos described the merger and the IPO of Bankia as a mistake. In 2011 a share cost around 45 euros, by the end of April 2012 the bank's share price had fallen to 30 euros.
On January 27, 2016, the Spanish Supreme Court ruled that the bank's 2011 IPO was invalid due to incorrect information in the prospectus. This means that not only the two small investors who successfully sued will likely get their money back, but hundreds of other investors. According to media reports, there are already claims against the major bank in the amount of 820 million.
Real estate crisis and nationalization
On May 7, 2012, Rodrigo Rato surprisingly resigned from the position of chief. His successor was José Ignacio Goirigolzarri . Two days later, Spain nationalized the bank. Much is reported about possible reasons for the rapid nationalization.
Der Spiegel wrote:
“Bankia is considered the biggest problem in the Spanish financial sector because of its numerous bad real estate loans. The institute is the fourth largest in the country. It emerged from the merger of Caja Madrid with a number of smaller savings banks. Bankia has ten million customers.
The troubled Spanish banking sector is becoming an ever greater burden for the euro zone. The institutes have been sitting on large amounts of bad loans from the real estate industry since the end of the construction boom in the country. According to the government, the total volume of real estate loans of Spanish banks is 320 billion euros. Of these, 180 billion were classified as "toxic". "
On May 24, 2012 it was announced that Bankia would receive a financial injection of 9 billion euros from the Spanish state. Economy Minister Luis de Guindos announced that this was composed of 7.1 billion euros for additional depreciation in the course of the banking reforms in Spain and 1.9 billion euros of capital buffer to meet European requirements. A day later, the bank demanded further government aid amounting to 19 billion euros, whereupon the rating agency Standard & Poor’s downgraded the creditworthiness of the institute and four other Spanish banks.
On August 31, 2012, the bank reported a loss in the first half of 2012 of EUR 4.45 billion during the restructuring phase. The Spanish government proposed that the state rescue fund Fondo de Reestructuración Ordenada Bancaria (FROB) with a net capital of 4.1 billion euros could help out. The Bank of Spain (Central Bank) should look into this. Bankia also announced that from January to June 2012, apparently unsettled customers withdrew around seven billion euros from their Bankia accounts. As the bank announced at the end of 2012, the closure of around 1,100 branches was planned for cost reasons. In the following year, further details were announced, for example 54 branches are to be closed in the Canary Islands. Since then, the population of the islands has been resisting these plans, especially in rural areas.
In June 2017, Bankia merged with the ailing Banco Mare Nostrum (BMN), which also emerged from a merger of several regional savings banks and got into trouble after the property bubble of 2008 burst.
Credit card scandal
Investigations against former presidents Miguel Blesa and Rodrigo Rato have been ongoing since October 2014 when it became known that the bank had made Black Card Visa series credit cards available to its board members, managers and directors for unrestricted use. In January 2015, the investigation was expanded to include 78 former Supervisory Board members. With the credit cards of the Visa black series , they could make unlimited purchases, hotel bookings, flights or safaris at the expense of the bank, which did not appear in any balance sheets. For these sums, a total of 16 million is currently assumed for the period between 1999 and 2012, no invoices have been drawn up and the tax authorities have not been informed. The only requirement was that users of these cards, also known as “ghost credit cards”, should not criticize the director's management style and his decisions.
On February 23, 2017, former bank managers Rodrigo Rato and Miguel Blesa, who were primarily responsible, were sentenced to four and a half and six years' imprisonment, respectively, for misappropriating funds.
See also
Web links
- Bank website (English and Spanish)
Individual evidence
- ↑ Entry in the BIC directory at SWIFT
- ↑ Youtube: Corporative video ( Memento from March 5, 2011 in the Internet Archive )
- ↑ standard.at May 24, 2012: Spain is giving Bankia money
- ^ "Banker's IPO was invalid" . In: FAZ of January 27, 2016, accessed on January 28.
- ^ "El Supremo anula la compra de acciones de Bankia por engaño." In: El País of January 27, 2016
- ↑ rhein-zeitung.de: Rato resigned as head of the major Spanish bank Bankia
- ↑ a b Spain nationalizes the country's fourth largest bank , spiegel.de
- ↑ The fear of the Greek banking quake , spiegel.de
- ↑ Spain saves Bankia with nine billion euros , spiegel.de
- ↑ Application for state aid: Spanish crisis bank needs another 19 billion euros from Spiegel Online , accessed on May 25, 2012
- ↑ Bankia reveals a loss of billions: Madrid calls the Spain fund on n-tv , accessed on August 31, 2012
- ↑ Bankia closes 54 locations in the Canary Islands - 167 employees affected at infos-grancanaria.com, accessed on September 3, 2013
- ↑ Thomas Urban , There were only 13 sz.de , June 28, 2017.
- ↑ Los consejeros de la Caja Madrid tenían tarjetas de crédito en 'negro' de hasta 50,000 euros al año. eldiario.es of December 13, 2013, accessed January 30, 2015 (Spanish)
- ↑ Spain chases the "ghost credit cards" . n-tv online from January 30, 2015
- ^ "La Audiencia condena a seis años de prisión a Blesa ya cuatro años y medio a Rato por las tarjetas black". In: El Mundo of February 23, 2017, accessed on February 24, 2017.