Markets fell across the globe on bad new from China, and Bankia's stock price continued to drop as well. New Bankia shareholders -- preferential shareholders being forced to exchange their quality shares for conventional shares -- are down 49.6% before the switch even takes place.
Plus, they will lose 38% when exchanging their shares for a total loss of 69%. It's expected that minority shareholders will petition for an arbitration if they can prove that there was any unsavory machinations or carelessness on Bankia's part.
The rest of the bank's shareholders will have to cut their losses after being told that they should only expect 40% in losses for the share exchange. The situation looks like a full-out fraud.
