SHARES in Spain’s troubled bank Bankia slumped over 28.6pc today on the Madrid stock market after trading resumed following a request for a record €19bn State bailout.
The stock plummeted over 40c to €1.12.
Shares in Bankia have fallen more than 70pc since its listing in July 2011 – it was established in 2010 following a merger of seven troubled regional banks.
The slump came on growing fears that Spain could be next in line for a EU/IMF/ECB bailout.
And the collapse is reminiscent of the demise of Anglo which, like Bankia, was also vastly exposed to the property sector.
Bankia had problem property related assets of over €30bn at the end of 2011.
Banco Financiero de Ahorros (BFA), Bankia’s parent, is seeking €19b in extra capital from State-owned fund - the Orderly Bank Restructuring (FROB).
Spain took a controlling 45pc stake in Bankia this month by converting a €4.46bn loan to its parent group BFA into equity.
Bankia shares had been suspended from trading on Friday ahead of a board meeting.
Prime Minister Mariano Rajoy earlier instructed Spanish banks to set aside an extra €30bn in 2012 on top of a €53.8bn earlier requirement.
Meanwhile, the cost of Spanish borrowing also rose – the yield on Spanish 10-year bonds climbed to 6.5pc today.