* Over 1 bln euros taken out since nationalisation - El
* New chairman informs board of cash exit
MADRID May 17 Customers of troubled Spanish
bank Bankia, nationalized last week, have taken out
over 1 billion euros ($1.3 billion) from their accounts over the
past week, El Mundo newspaper reported on Thursday.
The newly appointed chairman, Jose Ignacio Goirigolzarri,
informed a board meeting that customers had pulled out funds
since the bank was taken over by the government, El Mundo said,
citing information from the board meeting it had seen.
The government took over Bankia, the country's fourth
largest lender, on May 9 in an attempt to dispel concerns over
the bank's ability to deal with losses related to a 2008
Uncertainty over the final cost of Spain's banking reform
has stoked investor fears that an expensive international
bail-out could be on the cards, putting the survival of the euro
zone at stake.
Shares in Bankia slumped 10 percent on Wednesday,
compounding a week of falls, as small investors who had
participated in a July stock market listing sold their holdings
which have lost over half their value since the flotation.
Bankia did not respond to requests on Wednesday asking if
there had been mass withdrawals of cash from deposits. No-one
one was available immediately to comment on Thursday.