Former Spain central bank chief investigated for failed IPO

Spain's National Court is summoning the former heads of Spain's central bank and the stock market watchdog to be questioned for failing to stop the disastrous flotation of a savings bank that had to be bailed out.

Bankia, created after merging the assets of seven struggling Spanish banks, offered shares in an initial public offering in 2011. One year later, the lender was nationalized after a rescue that cost taxpayers 20 billion euros.

The court is charging eight officials responsible for supervising the lender's IPO with failing to stop it, including Miguel Angel Fernandez Ordonez, the former Bank of Spain governor, and Julio Seguro, former president of market regulator CNMV.

The Bank of Spain said three of those officials, who have high responsibilities, would resign Tuesday during a board meeting.