The Spanish treasury is going to pay for Bankia?s cushy bailout, explained Rodrigo Rato to Caja Madrid advisors. There is still much to discover about what happened at Bankia, and Rato has tried to clear up the confusion.
Foremost, Bankia did not have a large, unaccounted for deficit. The bank is subject to different criteria than any other bank for asking for public aid.
Even if some of the criteria resulted from financial reforms imposed by the government, they are providing Bankia more coverage than any other Spanish bank.
The result of imposing strict requirements is to increase the amount of aid. It´s surprising that the Spanish government has now changed its mind about whether it will use taxpayer dollars to finance the reform.
