Bankia executives jump ship with millions in payouts

As the government seeks to raise the €19-billion needed by Bankia, the news that Aurelio Izquierdo, it’s former finance minister, would walk away with such a large payoff raised questions about what Spain’s troubled banks have been doing with their money.

Another former senior Bankia executive, Matias Amat, received €6.2-million for taking early retirement, at 58, in September.

News of the payoffs came amid growing criticism of the multimillion euro deals handed out to executives at Spain’s cajas, or savings banks, during the boom years when they inflated a housing bubble that burst four years ago.

The toxic property assets they left behind are at the root of growing worries that Spanish banks will need a European-funded bailout on top of the Bankia rescue.

Spanish government sources, who last weekend said they would probably give Bankia government debt as collateral to raise €19-billion from the European Central Bank, backtracked on Tuesday, claiming that Spain could raise the money itself on the markets despite its high borrowing costs.

Bankia’s parent company, BFA, on Monday reported a €3.3-billion loss for 2011, a hundred times larger than previously stated. – © Guardian News and Media 2012

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Three ‘gringos’ brave heat, mosquitos, illegal gold miners and pirates...

A Wits University accounting professor has returned from his Amazon expedition he undertook to fight climate change

Fintech firms ramp up investments in Kenya’s microfinance space

Kenya’s microfinance banks are the target of fintech firms from abroad seeking to sidestep stringent regulatory perimeters for digital lenders

Harbour views at 9th Avenue Waterside

The award-winning eatery, which offers fine wines and food, is on stilts at Durban’s harbour

Zimbabwe hospital workers plot stillbirth burials

The policy is to cremate deceased infants but Bulawayo Hospital’s incinerators are not working
Advertising

press releases

Loading latest Press Releases…
×