Yahoo – AFP,
13 Feb 2015
Madrid (AFP) - A Spanish court Friday ordered former IMF head Rodrigo Rato and other bankers to pay an 800-million-euro ($911 million) court bond as it investigates them over an ill-fated stock listing of the Bankia group.
Former IMF head Rodrigo Rato and other bankers are ordered to pay an 800-million-euro ($911 million) court bond (AFP Photo/Dani Pozo) |
Madrid (AFP) - A Spanish court Friday ordered former IMF head Rodrigo Rato and other bankers to pay an 800-million-euro ($911 million) court bond as it investigates them over an ill-fated stock listing of the Bankia group.
It was the
latest step in a long investigation into alleged fraud in the 2011 stock market
listing of the bailed-out Bankia group and its former chairman Rato.
He is also
a former economy minister of Spain and from 2004 to 2007 was managing director
of the International Monetary Fund, which later played a leading role in
tackling the eurozone debt crisis.
The
National Court ordered the Bankia group, along with Rato and three other former
executives, to jointly pay the bond to cover their possible liability in the
case.
They are
suspected of misrepresenting Bankia's accounts ahead of its doomed stock
listing.
Bankia
nearly collapsed in 2012 and had to be bailed out by the Spanish government for
24 billion euros.
Spain later
received 41 billion euros from international creditors to protect its whole
banking sector from collapse.
Thousands
of customers who say they lost their money after the listing have brought
separate lawsuits against the group.
The ruling
said the defendants could appeal against the bond but otherwise would have to
pay it within a month or have their assets impounded.
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