Shares in Spain's Bankia plummet for second day

Shares in Spain's Bankia plummet a second day, dragging down IBEX-35 stock market 1.8 percent

Associated Press
Shares in Spain's Bankia plummet for second day
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FILE - In this May 31, 2012 file photo, the Bankia bank headquarters in seen in Madrid. Shares of Spain's bailed-out bank Bankia plunged 13 percent on Thursday Dec. 27, 2012 after officials with the nation's bank bailout fund revealed the nationalized institution had a negative value of euro 4.2 billion ($5.6 billion). Bankia was formed in 2010 in a merger of seven unlisted Spanish savings banks whose heavy lending for property hurt them badly after the country's extended real estate boom collapsed in 2008. (AP Photo/Paul White, File)

MADRID (AP) -- Shares in bailed-out Spanish bank Bankia SA are falling for a second day, dropping more than 30 percent at one point during trading on the IBEX-35 stock exchange.

By midday Friday, Bankia recovered slightly but was still trading down 25.2 percent at €0.41 while the IBEX-35 dipped 1.8 percent.

Officials with the country's bank bailout fund revealed late Wednesday that Bankia, which is in line for a €18 billion ($23.88 billion) bailout, was worth minus €4.2 billion. The Fund for Orderly Bank Restructuring revealed the extent of the bank's negative value — more debts than assets — due to worse-than-expected losses on toxic property investments.

Bankia's falling share price also hit Banco de Valencia, another nationalized lender, whose stock fell 20 percent, having closed 21 percent down the previous day.

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