Spain Shoots Higher After Reports That Bankia Will Be Nationalized

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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.

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