Here is some news about the Spain economic crisis that was on the cards from the get go: The board at Bankia are to be investigated. It appears that the Spanish bank carried out a massive fraud and therefore 32 members including Rodrigo Rato are facing an inquiry.
Bankia is Spain’s fourth largest bank and had to be bailed out in May at a cost of 23 Billion euros of public money. Rodrigo Rato and 32 other members of the board are to face charges of falsifying accounts, dishonest administration, price manipulation and improper appropriation.
It looked as though Bankia was going to be let off Scot-free as it were but Rosa Diez’s small political party, The Unión Progresso y Democracia Party accused Bankia of carrying out a massive fraud on its small investors. She feels that when Bankia was launched on the stock market, it was launched with falsified data.
The serious crime court in Spain, the Audiencia Nacional has decided to investigate Rosa Diez’s allegations as there was a case to answer according to the anti corruption prosecutor’s office.
Among those summoned by the judge to testify is the president of Stock Market National Commission, the former governor of the Bank of Spain, the Deloitte partner who was a Bankia employee and the legal representative of the Fondo de Reestructuración Ordenada Bancaria or FROB.
The serious crime court has also demanded details of all loans, credits and guarantees made since 2008 from the savings banks that comprise the Bankia group made to board members, executives, their families as well as any political parties.
Rodrigo Rato shot to fame as Spain’s finance minister and held the post from 1996 – 2004. He then went on to head the International Monetary Fund after the PP or Popular Party lost the elections in 2004 under José Maria Aznar to José Luis Rodriguez Zapatero of the opposition party or PSOE.