Private prosecutors driving an investigation into allegations of fraud at Bankia SA requested that International Monetary Fund Managing Director Christine Lagarde be called as a witness, court papers show.
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.
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.
International Monetary Fund Managing Director Christine Lagarde is testifying this morning at a Paris court investigating her decision to allow an arbitration that benefited a supporter of former President Nicolas Sarkozy.
Bankia SA former Chairman Rodrigo Rato said the new head of Spain’s third-biggest lender overstated losses at the institution while requesting a “brutal” recapitalization by the state, El Mundo reported.
The sight of Miguel Blesa, the former chairman of Caja Madrid, being driven to jail in a police van suggests Spain may be calling bankers to account after the nation needed European Union funds to bail out lenders.
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.