Court tells ex-IMF chief and Spain's bailed-out lender Bankia to post 800M euro bond in probe

Associated Press

A Spanish judge has ordered lender Bankia and four former executives — including an ex-IMF chief — to post a bond of 800 million euros ($910 million) to cover potential liabilities in a probe into alleged fraud.

In a ruling Friday, National Court Judge Fernando Andreu gave the bank and the executives a month to deposit the bond or it will begin freezing assets.

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Hailed as one of Spain's top banks when formed in 2010, Bankia was listed in 2011 under the directorship of Rodrigo Rato, former chief of the International Monetary Fund. But within a year it was found to have losses of 3 billion euros and had to be bailed out in 2012.

Andreu said documents presented for the bank's listing did not accurately present its financial situation.