Ex-Bankia chief to be investigated
A Spanish court has opened a fraud case against the former chief of state-rescued Bankia, and one-time IMF boss, Rodrigo Rato.
The lawsuit, brought by Union, Progreso y Democracia, a left-wing party, accuses Rato, amongst 33 others – including a former government minister and former Bankia chairman – of fraud, price-fixing and falsifying accounts. Fernando Andreu, a judge at the National Court in Madrid, agreed to investigate the complaint.
The case will investigate the initial public offering of Bankia SA in July 2011, the restatement of its earnings that showed 2.79 billion euros of losses, and the states takeover and rescue of the bank with the injection of 23.5 billion euros of capital. Spain nationalised the parent company last week after experts appointed by the bank rescue fund said it had a negative value of 13.6 billion euros.
Under Spanish law, the accused could face jail sentences of up to six…
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