Read the whole article on: http://www.guardian.co.uk/world/2012/jun/08/spain-savings-banks-corruption
Attempts to investigate Bankia, the country's fourth largest lender that absorbed a number of savings banks, have been blocked by the ruling People's party. Photograph: Sergio Perez/Reuters
As European taxpayers prepare to rescue Spain's ailing banks, anti-corruption prosecutors, academics and regional parliaments are uncovering a tale of greed, cronyism and political meddling that has brought many of the country's leading savings institutions to their knees.
With the fourth biggest lender, Bankia, demanding €19bn (£15.4bn) and authorities now admitting a further €9bn is needed by two former savings banks – CatalunyaCaixa and Novagalicia – concern is focusing on both the mushrooming bill and the way banks have been run.Court investigators are also scrutinising payments to former senior executives and the part-flotation of Bankia, in which 350,000 small investors saw two-thirds of their money wiped out.
