The accounting firm Deloitte valued Bankia at 12 billion euros at the time of its IPO in 2011. Recently, on April 30, presented its account statements to the CNMV without Deloitte´s signature.
Alarms sounded as people said that Deloitte would not account for the difference between Bankia´s stock valuation and its book value. Bankia has had to make strict adjustments, and Rodrigo Rato´s plan to save the bank was to ask for 6.5 billion euros. It wasn´t going to happen.
The bad blood between Rato and Deloitte, which also audited Banco de Valencia, began when the latter firm succumbed to an intervention after a discrepancy between valuation and corporate reports was discovered.
Rato ought to feel deceived after not realizing that various interests have shaken up the company. But the interests are not clear. Perhaps concerns over bad management? Someone needs to investigate what went wrong at Bankia.
