To shore up the Spanish banking system, Caja Madrid Chairman Rodrigo Rato may offload a stake in a water ride inspired by the Greek god Triton, a restaurant modeled after a Roman villa and an Egyptian-themed fun house called the Piramide del Terror.
Five days before Christmas, ex-Deputy Prime Minister Rodrigo Rato was asked by a prosecutor probing the collapse of Bankia SA whether he’d done business with Jaime Castellanos, chairman of Lazard Ltd.’s Spanish unit.
Spain’s Bankia group said a government-ordered clean-up of its real estate holdings would require 5.1 billion euros ($6.7 billion) in provisions and extra capital, and that it can meet the demands alone.
Spain’s effort to bolster its banks, stanch spending and stave off sovereign debt contagion will hinge in part on the initial public offering of Bankia, a lender formed from the merger of seven savings banks.
Spain’s lenders are pledging some of their best assets to raise record levels of secured funding, including from the European Central Bank, eroding creditor safeguards at the same time the government is planning the country’s largest bank bailout.