The FROB argues that the recapitalization of Bankia has been the … – La Vanguardia

The FROB argues that the recapitalization of Bankia has been the … – La Vanguardia

Madrid, Dec 7 (EFE) .- The Fund for Orderly Bank Restructuring (FROB) said today that the recapitalization of Bankia has been done “properly”, despite accounting adjustments arising on the expert report has been known this week.

In a statement, the FROB explains that the suitability of the recapitalization plan designed by the team of the bank’s president, Jose Ignacio Goirigolzarri, has been confirmed by the results of the review of the quality of assets and the stress test conducted by the ECB and the European Banking Authority, published in late October.

“Given the reports in recent days in the media,” the FROB explains adjustments identified by the experts who made the report “under no circumstances” affecting the development or implementation of the recapitalization plan, amounting to 24,628,000 euros, including the management of hybrid instruments, to 6.669 million.

He added that in late 2012 and in compliance with the legislation, the FROB determined the economic value of Bankia in a negative amount of 4.148 million euros, based on three independent expert reports.

This value explains, “is based on the projections contained in the Plan of Restructuring of the institution and not on historical book values” and are projections that collect all adjustments required by the regulations.

Second, states that the actions of recapitalization of the company and the management of hybrid made in April 2013, including the reduction of capital to absorb losses or capital increases, also performed on the basis the economic value of the entity.

Also, remember FROB 2012 accounts collected all writedowns required by the two royal decrees passed that year, which totaled 23.097 million and exceed those indicated by the experts .

And all this must be added the transfer of assets to the SAREB with a carrying amount of 46,392,000 euros.

According to the expert report known this week, previous accounts the IPO of Bankia in the summer of 2011 did not reflect the true picture of the organization, nor the whole of that year, both the former president of the organization, Rodrigo Rato equipment such as first formulated after arrival of Jose Ignacio Goirigolzarri.

The report, delivered last December 4 to judge in the “Bankia case,” Fernando Andreu, claimed that he had “accounting errors” not showing the actual status of the group and Deloitte as auditors, must detect. The same happened in Banco de Valencia, one of the subsidiaries.

In addition, the work commissioned by the judge to clarify the events that led to the rescue of Bankia, which received a grant of more than 22,400 million euros , suggesting that the price fixed for the stock debut, 3.75 euros, not fixed competitively.