Shares in Spain’s Bankia Plunge on Bailout Plan!

• Shares in Spain’s Bankia plunge on bailout plan! 
  By CIARAN GILES, via http://www.businessweek.com/ 
  MADRID
  Concern over the bailout plans for troubled Spanish lender Bankia  and the country’s ability to finance itself sent the nationalized bank’s share price plummeting and Spain’s borrowing costs soaring Monday.
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  Bankia’s shares were down 21 percent to (EURO)1.23 after trading following the bank’s announcement Friday that it will need (EURO)19 billion ($23.84 billion) in state aid — the country’s biggest bailout — to shore itself up against its bad loans. The shares had closed at (EURO)1.57 before trading was suspended Friday.
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  Investor remained nervous over Spain’s finances and whether it might soon join the ranks of Greece, Ireland and Portugal and seek an international bailout. The interest rate, or yield, for 10-year bonds on the secondary market — a key indicator of market confidence in Spain’s ability to raise funds — jumped 17 basis points in morning trade Monday to at 6.46 percent.  A rate of 7 percent is considered unsustainable in the long run.
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  In comparison, Germany’s bonds, seen as a safe haven investment, were at 1.38 percent, 508 basis points lower than Spain’s. Trading on Madrid’s main Ibex 35 share index was down 1 percent.
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