MADRID Feb 15 The Bank of Spain has launched an
investigation into property deals made by the real estate arm of
nationalised lender Bankia, two sources at the central
bank and at the lender said on Friday.
The sources declined to give any further details on the
nature of the investigation. The probe is another blow for
Bankia, which had to seek a government bailout last year because
it could not cope on its own with billions of euros in real
According to the source from the Bank of Spain, Bank of
Spain Governor Luis Maria Linde confirmed the investigation to a
judge when he testified on Friday behind closed doors about the
bank's listing in 2011.
"The governor, in his declaration, has confirmed that the
Bank of Spain is studying the operations of Bankia Habitat. Once
it has reached its conclusions over this operation, it will
act," the source told Reuters.
The source at Bankia said the lender - a merger of seven
regional savings banks in 2010 - had also launched its own
internal investigation and stood ready to act if any bad
practice was revealed.
(Reporting By Andres Gonzalez; Writing by Paul Day; Editing by
Julien Toyer and Leslie Adler)