Two years after it was nationalized, Bankia has become a management model for how to deal with a financial crisis and prepare for privatization. It recovered quickly from near financial collapse when Spain was close to asking for a bailout and the euro's future was in jeopardy.
When Bankia was saved in order to save the life savings of millions of people, the government pumped 22.5 billion euros into the bank and put José Ignacio Goirigolzarri at the helm. The work ahead was not easy. Goirigolzarri had to clean up the bank's balance sheet, regain credibility from the markets and pay back the government and recuperate what shareholders lost. Even though he has yet to handle this last part, recent earnings results show that Bankia is on target to do so. It is one of ten European banks that boosted their profits this year and one of the most profitable firms on the Ibex. But many people wonder what secret the company has. For Goirigolzari, there are no secrets. He maintains utter transparancy and works hard. He sold new stock shares, made payroll adjustments and outfitted the bank with a management team without dabbling in petty politics and corruption.
