Spain's Four Biggest Banks To Get $50B In Bailout Funds

 @MikeObelm.obel@ibtimes.com
on November 28 2012 8:32 AM
Spanish flag at Bank of Spain building
Roughly 610,000 Spaniards visited the U.S. in 2012, a decline of about 13.3 percent. Reuters

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.

 

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