Shares in Spain's Bankia plummet a second day, dragging down IBEX-35 stock market 1.8 percent
MADRID – Shares in bailed-out Spanish bank Bankia SA are falling for a second day, dropping more than 30 percent at one point during trading on the IBEX-35 stock exchange.
By midday Friday, Bankia recovered slightly but was still trading down 25.2 percent at €0.41 while the IBEX-35 dipped 1.8 percent.
Officials with the country's bank bailout fund revealed late Wednesday that Bankia, which is in line for a €18 billion ($23.88 billion) bailout, was worth minus €4.2 billion. The Fund for Orderly Bank Restructuring revealed the extent of the bank's negative value — more debts than assets — due to worse-than-expected losses on toxic property investments.
Bankia's falling share price also hit Banco de Valencia, another nationalized lender, whose stock fell 20 percent, having closed 21 percent down the previous day.