Bank Of Spain Formally Nationalizes Bankia, Says Insolvent Bank Is "Solvent", Adds There Is No Cause For Concern

Tyler Durden's picture

The only thing funnier than a nationalization statement spun as positive, or favorable for taxpayers, is one that has been Google translated, in this case from Spanish, courtesy of Bank of Spain, which has just formally bailed out Bankia, leaving the best for last: "In any case, BFA-Bankia is a solvent entity that continues to function quite normally and customers and depositors should have no concern." Move along. Nothing to see here. Nobody should be concerned.

From de Bank of Spain:

Statement on BFA-Bankia

The Board of Finance and Savings Bank (BFA) announced today the Bank of Spain its decision not to buy in the terms and conditions agreed to the securities issued in the amount of € 4.465m who signed the FROB (Bank Restructuring Fund). BFA has concluded that the most desirable to strengthen the soundness of the business project that began with the appointment of Jose Ignacio Goirigolzarri as president is to request the conversion of these titles in stock ordinary. This conversion must be authorized by the Bank of Spain and the other authorities Spanish authorities and community and will be conducted in accordance with the valuation process established in the indenture securities.

The Bank of Spain has worked hard in recent months with the group address BFA-Bankia to specify the measures to ensure compliance with the provisions of the RD-l 2/2012 for the sanitation Spanish financial system. BFA-Bankia late March presented a restructuring plan and restructuring that included measures that would comply with the RD-l, and standardize its financial  position.

After analyzing this reorganization plan, the Bank of Spain also ordered the entity measures complementary to streamline and strengthen management structures and management, increasing professionalization and a divestment program. These additional actions should serve to enhance the soundness of the institution and restore market confidence. The events of the past weeks and the growing uncertainty about the future of the company has made it advisable to go further and raise the providing resources to accelerate and increase public sanitation.

The changes in the presidency of BFA-Bankia is precisely oriented in the direction shown in professional management and allow the group to boost its restructuring program. The new address of the entity must submit in the shortest possible plan of reorganization strengthened that places BFA-Bankia able to cope with a full guarantee its future.

In any case, BFA-Bankia is a solvent entity that continues to function quite normally and customers and depositors should have no concern.

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EscapeKey's picture

Nationalization is so hot right now.


Japan to nationalize Tepco for ¥1 trln: reports


SAN FRANCISCO (MarketWatch) -- The Japan government on Wednesday approved a plan to nationalize Tokyo Electric Power Co.TKECY 0.00% JP:9501 0.00% , the operator of the Fukushima Daiichi nuclear facility, in exchange for a capital injection of 1 trillion yen ($12.55 billion), according to media reports. The restructuring plan will put Tepco under government control with the aim of restoring profitability within two years, the reports said. The Japanese government will also have an option to increase its ownership up to two-thirds majority if the utility company fails to meet its targets, The Wall Street Journal said.

GeneMarchbanks's picture

It's going viral.

Meanwhile Spain might as well nationalize Santander and tell everyone that they have no real estate exposure.


NotApplicable's picture

Nobody expects the Spanish Acqusition!

ChrisDG74's picture

That was just fucking brilliant! I wish I could "up" you more than once.

TheGardener's picture

Socialismo o muerte!

It still reads on some Cuban walls.

Spaniards have a very dark humor and the rest of Europe
never stopped being socialist.

EscapeKey's picture


1. Setup fund external to company (but wholly owned).
2. Transfer troubled assets to said fund.
3. Claim that you have no real estate exposure.

Sort of equivalent to Bernanke claming he "does not print money", ie rhetoric, a technicality, a play on words, a blatant lie.

Ag1761's picture

GeneM, what do you know about Santander, any sources of their troubles appreciated. I have some contacts in Spain I know still hold a lot of fiat with them, keep telling them to GTFO. Is their UK operation slightly "safer" for a move, temporarily?


TheGardener's picture

Ag , as in respect to the "UK operation slightly safer"
be reminded of Argentina where the "smart" money had dollar
accounts at foreign affiliates of Citi and the like...all got screwed

TheGardener's picture

Not so smart money I meant, the less dumb went to Uruguay but were treated like beggars with just a million to put
somewhere save because Brazilians at the time , with just
the prospect of a socialist leaning government, lined up
to get 10 offshore and if they where from Rio or even Sao Paulo more likely with a cool one hundred .

Those where the days. Now there is nowhere safe and a
million could buy you a loaf of bread 4 years on.

Ag1761's picture

Thanks TG, gulp. Personally I have been considering an offshore stash of cash or a basket of foreign currencies (cash) but not an area I have experience of.

I have a fair %age of phyzz which I feel ok about, also land and bricks and mortar, no debts. While this is ok they can always be taken away from me. I still have a load of digits in a few UK banks. This is worrying me now. I have noticed many people suddenly begin to wake up to the Euro issues now wheras one, two years ago, same people just stared at me blankly when discussing such talk.

smiler03's picture

 "How safe is Santander? 

Santander in the UK is part of the Santander Group, which also owns Banco Santander, the largest bank in the eurozone and a cornerstone of the Spanish economy. 

However, the UK arm operates as an entirely separate business to its Spanish sister. This prevents problems in Spain affecting British customers, it says. 

A Santander spokesman says: ‘Santander’s UK business is strong and has a standalone credit rating which is one of the highest credit ratings of any UK bank.’"

declaration: I bank with Santander UK plc

Ned Zeppelin's picture

Translation: you are completley f*cked if you have deposits at Santander.  GTFON.

CompassionateFascist's picture

My Us Silver Eagles are extremely safe. But only if I secure them with lead.

rabbitusvomitus's picture

I just found out from my "lovely" Sovereign Bank Teller today, that Sovereign Bank will now be "officially" taken over as a whole and be renamed, yup you guessed, Santander!

Just Great! So the Spainards fucked up their banks, now they're gonna come here and fuck up ours!, oh..wait, ahh yeah, nevermind...

LongSoupLine's picture

I just went long ATM parts suppliers...

TheGardener's picture

People across Europe will be told they have no real estate
and all savings are gone. Only private debts are there to stay. US likewise of course except student debt, which
will be counted triple for good measure.

Not Too Important's picture

What forward thinking. As soon as the uranium and plutonium is scraped from the earth, after Tokyo is completely rebuilt (the entire city would be considered nuclear waste in the US), and the other 14 NPPs and SPFs in various states of destruction are cleaned up, after the 6,000+ nuclear bombs worth of radiation blown into the atmosphere is removed - all by technology not invented yet - profitibility is right around the corner.

Or, they shove everything into the sea (what they've been doing so far), declare radiation OK if you smile (which they've announced) and have a beauty contest with girls who have only eaten Fukushima food.

I hope they get back from vacation soon. I'd hate to think 'vacation' translated by Google was really 'abandonment'.

buryfarmer's picture

Spain will need a bailout. 

Arturo's picture

And this has been anounced during the UEFA League Final, Atletico Madrid vs Athletic Bilbao. This is HILARIOUS.

Tyler, you should highlight the main sporting events in order to be alert of possible important news in Spain.

palmereldritch's picture

TEPCO was just following Spain's lead thinking that they too could nationalize radioactive fallout.

Marginal Call's picture

This is continued retaliation against Argentina, right?

fonzannoon's picture

Anyone just see Fartiroma go after the occupy guy on CNBS outside of Bank of America? She is evil and awful.

Bam_Man's picture

That was Maria Bartiromo?

I thought it was Lilly Munster.

blunderdog's picture

Lilly Munster's hot.  Love the streaks, grrl!

Dick Darlington's picture

LOL! Add one insolvent zombie to the long list. Btw, our dear old friend Dexia, which has been bailed out 2 times during the last 3-4 yrs, just received fresh 12 billion in central bank ELA funds. But not to worry Dexia too is a solvent entity that continues to function quite normally and customers and depositors should have no concern.


Navymugsy's picture

I think this is in English but I'm not sure...

John_Coltrane's picture

The words, yes, the sentences not so much.

q99x2's picture

And will the final ramp of the day be used to sell into?

Doubleguns's picture

the sanitation Spanish financial system


nuff said.

Gidas19's picture

FBA Bankia shareholders just got punked, no wait... corzined...

HD's picture

No need for concern. Free toaster with every account seized.

Village Smithy's picture

How about a free rifle?

TheGardener's picture

"In any case, BFA-Bankia is a solvent entity that continues to function quite normally and customers and depositors should have no concern."

I would translate :

"Whatever happens, BFA-Bankia is a solvent entity that continues to function with ABSOLUTE NORMALITY and her clients and depositors don`t have anything to worry about."

Google translation being quite sophisticated, some of the real spin got lost in translation.

falak pema's picture

first sign of rationality; nationalise and take the phukker off the ponzi grid. That's ALL you can do for the time being until the next Hell Bat falls...

CompassionateFascist's picture

Rationality? Insolvent gubmint nationalizes insolvent bank? Prolly not. Just theft at a higher level.  

carbonmutant's picture

Try not to hyperventilate when taking deep breaths...

distopiandreamboy's picture

In any case Spain is a solvent country that continues to function quite normally and citizens and bond holders should have no concern.


carbonmutant's picture

Remember the EU stress tests... those were the good old days

youngman's picture

It is funny...kind I guess the ATM guy is again working his ass off...and the new accounts guy is back to his napping....

The Swedish Chef's picture

I repeat, Bear Sterns is FINE!

NotApplicable's picture

"We are adequately capitalized, and have no cash flow issues."

Jena's picture

"No chance the U.S. will be downgraded."

Bwahaha WAGFDSMB's picture

"64k ought to be enough for anyone."

LetThemEatRand's picture

Banksters keep their millions of ill-gotten gains, taxpayers get their bad bets.  What a deal!   I wonder why the masses are starting to think that maybe, just maybe they are getting royally fucked.

CompassionateFascist's picture

Yeah...fucked by statists like U. W/o Gubmint to colonize, the Pluto's would be bailing out the windows instead of being bailed out.  

ebworthen's picture

So let me get this straight:

Banks that have to be bailed out by taxpayer money or nationalized outright are solvent?

Would that be like my adult children being self-sufficient because they live in my basement and take the bus?

LawsofPhysics's picture

Yes, please show them to the nearest recruiter so that we may continue to re-hypothicate all of our assets that somehow ended up in other countries.

Kaiser Sousa's picture

So let me get this straight...Banks that have to be bailed out by taxpayer money or nationalized outright are solvent?


thats shut up and stop thinking....