Ex-head of Bank of Spain charged with fraud over Bankia flotation scandal

THE former head of the Bank of Spain has been charged with fraud after the failed floatation of giant savings bank Bankia.

Miguel Ángel Fernández Ordóñez is accused of ignoring financial problems at the bank before allowing the floatation in 2011, a move which brought Spain to the brink of financial ruin.

Bannkia’s €22 billion bailout came after it posted the largest loss in Spain’s corporate history in 2012.

Some 200,000 Bankia shareholders saw their investments wiped out once shares slipped from €3.75 a share to under €1.

Bankia was nationalised the following year, with the Spanish government forced to seek a bailout.

Seven other regulatory officials have been charged in connection with the case.

In a separate case, former Bankia chief Rodrigo Rato has been charged with using company credit cards for personal use.