PP ordered second crisis plan for Bankia, Rato tells court
The investigation continues into the bank´s collapse in May
Disgraced former Bankia Chairman Rodrigo Rato testified on Thursday that the Popular Party (PP) government had asked him days before he resigned to present them with a second plan aimed at cleaning up the institution's property assets, even though a first operation had already been approved by the Bank of Spain.
Rato, who is a target along with others in a High Court investigation into Bankia's collapse in May, said that another contingency plan based on a worst-case scenario for the Spanish economy was completed in early April.
He told High Court Judge Fernando Andreu that the central bank had approved the first contingency plan a few weeks earlier.
The PP government knew what was going on at the bank and the plans that were being put into place, Rato testified, according to judicial sources. Nevertheless, it withdrew its support and he resigned on May 7.
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