Bankia loses a quarter of its market value in one fell swoop

Strict terms of European bailout for nationalized bank spook investors in worst-performing stock

Madrid -

The nationalized lender Bankia saw its shares plummet 25.31 percent on Friday in the single greatest drop since it was listed in the summer of last year.

Investors divested themselves massively of their stock after the European Commission announced its restructuring plan for Spanish banks, which entails tough conditions in exchange for the first tranche of 37 billion euros in aid.

The struggling lender is expected to lose around 19 billion euros in 2012. Its shares so far this year have dropped around 80 percent, making it the worst-performing stock in the blue-chip Ibex 35 index.


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