Spain's four nationalized banks on Wednesday won the approval of European Union regulators for nearly €40 billion ($51.78 billion) in euro zone funding, but the restructuring plans that made the approval possible mean numerous layoffs and big losses for bond-holders of the banks.

BFA/Bankia, Catalunya Banc, NCG Bancco and Banco de Valencia SA will receive 37 billion from the European Stability Mechanism. In exchange for that, bond-holders must take an approximately €10 billion loss, Banco de Valencia must be sold to Caixabank, a financially sound Spanish bank, and the largest of the four banks, Bankia, must lay off more than 6,000 workers.