European Commission Approves Bailout of 4 Spanish BanksSubmitted by emalvini on Wed, 11/28/2012 - 15:26
European Commission Approves Bailout of 4 Spanish Banks
By RAPHAEL MINDER and JAMES KANTER
Published: November 28, 2012
MADRID — The European Commission approved Wednesday a payment of €37 billion from the euro zone bailout fund to four Spanish banks on the condition that they lay off thousands of employees and close offices as part of their restructuring.
The most significant cuts will be made by Bankia, the giant lender whose collapse and request for €19 billion, or $25 billion, in additional capital last May led Madrid to negotiate a banking bailout of up to €100 billion a month later.
The funds approved Wednesday are part of that negotiated amount and will come from the European Stability Mechanism, the bailout fund for the euro zone.