Bankia is worth -13.65 billion euros (yup, that’s minus) and goes bust

The directors of Bankia have signed off on the final internationally backed independent assessment of the worth of the bank : it’s worth -13.635 billion euros.

That is, add up the assets, take away the debts, and you’re left with a hole of almost 14 billion euros.

That’s a big hole.

The state has confirmed that 100% of the bank will be nationalised, with immediate effect, with the state backed FROB bank fund taking over control of the now failed bank. All directors of the bank have either resigned or will do so in short order, to be replaced with new directors appointed by the State.

It’s only a few short months since Bankia happily predicted it would make a very, very small profit this year.

Bankia has been promised 19 billion euros in EU rescue funds this July, and a further 12 billion in October. How much more it will need has not yet been announced.

 

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