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Spanish Lender Seeks $24 Billion Bailout – Ratings Cut on 5 Banks – NYTimes.com

Spain’s banking crisis worsened Friday as the board of Bankia, the country’s biggest mortgage lender, warned that it would need an additional 19 billion euros ($23.88 billion), far beyond what the government estimated when it seized the bank and its portfolio of delinquent real estate loans earlier this month.

When Spain seized Bankia May 9, Luís de Guindos, the Spanish economy minister, said it would need at least $11 billion.

The government is trying to head off a collapse of the bank, which could threaten the Spanish banking industry and reverberate through the financial centers of Europe and beyond. The fear is that it will not have the money to save its banks, and their $1.25 trillion in deposits, and will need a rescue by the rest of Europe — even as political and financial leaders struggle to resolve Greece’s debt debacle.

via Spanish Lender Seeks $24 Billion Bailout – Ratings Cut on 5 Banks – NYTimes.com.

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