Photo: Getty / David Ramos
Spanish equities are shooting higher after falling nearly 2 per cent this morning.That makes the IBEX 35 the only major stock index in Europe to be rallying right now.
This jump follows a report in El Confidencial (Spanish) that Spain will nationalize troubled Spanish bank Bankia by injecting about €20 billion.
The bank’s president resigned yesterday, leading many to believe that such a bailout might be in the cards.
The report cites sources that said a rescue of the bank and its parent BFA by the Spanish government was imminent.
The Spanish government is expected to announce a larger bailout plan for the banking sector on Friday.