Spectre of bailout looms as banking turbulence goes on
[independent.co.uk] Further indications of the ultra-volatile future facing Spain’s banking sector emerged yesterday when shares in the country’s fourth-largest lender, the part-nationalised Bankia, bounced back abruptly with an increase of nigh-on 26 per cent during early trading.
The dramatic upturn followed a 28 per cent fall in share prices on Thursday amidst rumours of a mass run on Bankia, with withdrawals of up to €1bn by creditors. And the financial gloom already surrounding Spain darkened further when the credit-rating agency Moody’s downgraded 16 Spanish banks, as well as Santander UK, by between one and three notches.
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