MPs call for parliamentary investigation after Bankia case widens

  • Banco de España and CNMV officials to be questioned by judges

The wave of allegations of malpractice by ex-bosses at Bankia took a new turn this week. Officials at the Banco de España and the CNMV, the body that oversees the running of the Spanish stock market, have been called for questioning by judges.

Investigators want to see if warnings from government inspectors in 2011 that Bankia wasn't in a fit state to be launched on the stock market were ignored. In the end Bankia became a quoted company but had to be rescued soon afterwards with 24.4 billion euros of public funds and many small shareholders lost money.

Following the latest news, MPs will debate also setting up a commission to investigate. Opposition MPs favour a focus on Bankia for it, which had closer ties to the ruling PP party, however the government is arguing for a broader remit that covers the financial crisis in general.