Spain denies bank run reports

17-May (Financial Times) — Spain has been moved to deny reports of deposit withdrawals from Bankia, the part nationalised savings banks, after its shares tumbled as much as 29 per cent on Thursday.

Following reports in the Spanish media that €1bn had been taken out by clients of Bankia, Spain’s second-largest lender by domestic depositors, in the week since it was nationalised, Fernando Jiménez Latorre, secretary of state for the economy, denied the bank was losing client money.

“It is not true that there has been an exit of deposits at this time from Bankia,” Mr Jiménez Latorre told a press conference on Thursday. “There is no concern about a possible flight of deposits, as there is no reason for it.”

[source]

PG View: You may recall that there were all sorts of denials that Lehman Bros and Bear Stearns were in jeopardy several years ago as well…

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