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35-565: Bankia ( Spanish pronunciation: [ˈbaŋkja] ) was a Spanish financial services company that was formed in December 2010, consolidating the operations of seven regional savings banks , and was partially nationalized by the government of Spain in May 2012 due to the near-collapse of the institution. As of 2017, Bankia was the fourth largest bank in Spain, with total assets of €179.1 billion. In 2021,

70-886: A macroeconomic scale that impacts domestic politics and foreign relations . The extragovernmental power and scale of the finance industry remains an ongoing controversy in many industrialized Western economies, as seen in the American Occupy Wall Street civil protest movement of 2011. Styles of financial institution include credit union , bank , savings and loan association , trust company , building society , brokerage firm , payment processor , many types of broker , and some government-sponsored enterprise . Financial services include accountancy , investment banking , investment management , and personal asset management . Financial products include insurance , credit cards , mortgage loans , and pension funds . The term "financial services" became more prevalent in

105-478: A 7.5% stake in Bankia for €1.3 billion. The shares were sold at €1.51 each. Further divestment was expected for 2014 under the rescue programme, but did not happen. On 7 July 2015, Bankia paid the first dividend in its history €0,0176 per share. On 16 October, Bankia completed the sale of City National Bank of Florida for $ 883 million to Chilean bank BCI . The bank was bought by Caja Madrid for $ 1.12 billion in 2008. At

140-481: A business, helps businesses raise money from other firms in the form of bonds (debt) or share capital (equity). The primary operations of commercial banks include: The United States is the largest commercial banking services location. New York City and London are the largest centers of investment banking services. NYC is dominated by U.S. domestic business, while in London international business and commerce make up

175-507: A group of 112 global companies leading the fight against climate change. The restructuring period will end on 31 December 2017. The deadline for the privatisation of Bankia was end-2019, however, in December 2018 the Government decided to postpone the privatization until end-2021. On 27 February 2018, Bankia announced that it planned to pay €2.5 billion to shareholders over the next three years as part of its 2018-2020 strategic plan. It aimed for

210-803: A liquidity contract with Beka Finance, coinciding with the announcement that investor George Soros was taking a stake in FCC. Some media outlets have also reported that George Soros used Gala Capital, a significant shareholder in Beka Finance, as an investment vehicle  to participate in the Spanish market.   In April 2021, Beka hired most of the M&;A team from BNP Paribas to launch its own M&A division. In 2021, Beka appointed former Spanish Agriculture Minister and European Commissioner for Energy and Climate Action Miguel Arias Cañete to its Board.   To accept

245-404: A liquidity guarantee of €19 billion to BFA, 12 of which would be provided to Bankia. A number of limitations were imposed as a result of having received state aid. Shareholders had to share part of the burden of the capital injection, the balance sheet had to be reduced, dividends were restricted until 2014, and both the branch network (-39%) and workforce (-28%) had to be reduced. In addition to

280-488: A profit of €1.3 billion in 2020. On 4 September 2020, it was confirmed that CaixaBank and Bankia were negotiating a potential merger. The merger would create the biggest domestic bank in Spain with assets of €650 billion. The merger was effective 26 March 2021. On 27 January 2016, the Spanish Supreme Court ordered Bankia to reimburse two small investors for misleading them during its 2011 IPO. The court said that

315-672: A representation office in Shanghai . The bank is organised into six business areas: Retail Banking, Business Banking, Private Banking, Asset Management and Bancassurance, Capital Markets and Investees. Bankia is listed on the Bolsa de Madrid and was a constituent of the IBEX 35 . Financial services The finance industry in its most common sense concerns commercial banks that provide market liquidity , risk instruments , and brokerage for large public companies and multinational corporations at

350-526: A significant portion of investment banking activity. FX or Foreign exchange services are provided by many banks and specialists foreign exchange brokers around the world. Foreign exchange services include: London handled 36.7% of global currency transactions in 2009 – an average daily turnover of US$ 1.85 trillion – with more US dollars traded in London than New York, and more Euros traded than in every other city in Europe combined. New York City

385-573: A variety of reasons. Some smaller financial centres, such as Bermuda , Luxembourg , and the Cayman Islands , lack sufficient size for a domestic financial services sector and have developed a role providing services to non-residents as offshore financial centres . The increasing competitiveness of financial services has meant that some countries, such as Japan, which were once self-sufficient, have increasingly imported financial services. The leading financial exporter, in terms of exports less imports,

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420-494: Is a Spanish financial services company, created in 1989 as a subsidiary of Caja Madrid (which subsequently became Bankia ). Beka Finance specializes in providing and developing financial products and services, asset management, financial advisory, investment banking and direct investment. In 2013, the company was acquired by the Catalan investor group GVC Gaesco, which subsequently sold the company to Gala Capital in 2020. The firm

455-405: Is primarily owned by its management team. The chairman is investment banker and entrepreneur Carlos Tejera, formerly a consultant at McKinsey & Company and chairman of Gala Capital. Carlos Stilianopoulos, CEO of Beka Finance, was previously president of Wholesale Banking and CFO at Bankia. Since 2020, Beka Finance has undertaken a series of international financial transactions. In 2020, bought

490-796: Is the United Kingdom , which had $ 95 billion of financial exports in 2014. The UK's position is helped by both unique institutions (such as Lloyd's of London for insurance, the Baltic Exchange for shipping etc.) and an environment that attracts foreign firms; many international corporations have global or regional headquarters in the London and are listed on the London Stock Exchange , and many banks and other financial institutions operate there or in Edinburgh . Beka Finance Beka Finance

525-593: Is the largest center of investment services, followed by London. The United States, followed by Japan and the United Kingdom are the largest insurance markets in the world. A financial export is a financial service provided by a domestic firm (regardless of ownership) to a foreign firm or individual. While financial services such as banking, insurance, and investment management are often seen as domestic services, an increasing proportion of financial services are now being handled abroad, in other financial centres , for

560-408: Is traditionally among those to receive government support in times of widespread economic crisis. Such bailouts, however, enjoy less public support than those for other industries. A commercial bank is what is commonly referred to as simply a bank. The term " commercial " is used to distinguish it from an investment bank , a type of financial services entity which instead of lending money directly to

595-527: The United States partly as a result of the Gramm–Leach–Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge. Companies usually have two distinct approaches to this new type of business. One approach would be a bank that simply buys an insurance company or an investment bank , keeps the original brands of

630-459: The Portuguese loan securitization company Sagres, which had over €6.5bn under management and was previously owned by Citigroup . That year, Beka also raised €60m for its social impact fund Cuanimen. In 2021, launched the €300m Beka & Bolschare Iberian Agribusiness Fund to invest in sustainable agriculture; it also created Beka Credit, a new €2.3bn lending platform. In 2022, Beka acquired

665-546: The acquired firm, and adds the acquisition to its holding company simply to diversify its earnings . Outside the U.S. (e.g. Japan ), non-financial services companies are permitted within the holding company. In this scenario, each company still looks independent and has its own customers, etc. In the other style, a bank would simply create its own insurance division or brokerage division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company. The financial sector

700-560: The bank later transferred the information to the FROB. In January 2022, Carlos San Juan de Laorden, a retired urologist from Valencia with Parkinson's disease started an online petition for more human customer care at bank branches. At a malfunctioning ATM a sign informed customers that they could only be seen with appointments, but no appointments could be made by phone. He gathered more than 600,000 signatures in 2 months, asking banks and other institutions to serve all citizens, and not discriminate

735-411: The bank merged with CaixaBank to create a new entity, initially preserving its original name. Bankia was formed on 3 December 2010, as a result of the union of seven Spanish savings banks that had a major presence in their historical core regions. The merger of the seven banks, known as 'cold fusion', took only four months, with the integration contract being signed on 30 July 2010. Caja Madrid , which

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770-561: The end of 2015, Bankia had fulfilled two years ahead of schedule all the targets set by the European Commission in the BFA-Bankia Group Restructuring Plan. The bank also reported the best efficiency, solvency, and profitability among the six largest Spanish banks. On 23 February 2016, Fitch raised Bankia's rating to "BBB−", restoring the bank's rating to investment grade. On 8 September, Bankia announced that it

805-534: The financial problems, the new management had to deal with controversies related to former management. In 2013, Bankia returned to profitability. In 2013, Bankia Bolsa was acquired by the Catalan entity GVC (founded by the president of the Barcelona Stock Exchange, Joan Hortalà). Bankia, which received 37 million euros from the sale, did not report the capital gains. Subsequently, the entity changed its name to Beka Finance . On 28 February 2014, Spain sold

840-458: The increasing bailout as making Spain one of the new focal points of the European sovereign-debt crisis . In response to growing concerns, Standard & Poor's downgraded its rating of Bankia's creditworthiness to BB+, making it a junk bond . In the end, the rescue plans approved by the European Commission on 27 June 2012 under state aid rules included an equity injection for €4465 million and

875-457: The new president. Concerns about the value of Bankia's assets, and the potential for further losses in the future, prompted speculation that the Spanish government would inject up to €10 billion of new capital into the troubled bank. On 10 May, the Spanish government said it would convert its preference shares in BFA into voting shares, giving it a controlling stake of 45% in Bankia. On 25 May, trading in

910-510: The oldest and most vulnerable members. In Spain, the number of bank branches had shrunk to about 20,000 in 10 years since the bailout of 2012, and with the coronavirus pandemic another 3,000 branches closed in less than 2 years with the push for online banking . The bank has its registered office and address of the subsidiaries in Valencia , while its operational headquarters are in Madrid . It also has

945-467: The personal spending by executives and directors totaled €12.5 million. The fraud was discovered by the publication of an article on eldiario.es based on the emails of Miguel Blesa. Initially, the article did not lead to any judicial investigation. Instead, Madrid's chief prosecutor tried to initiate legal actions against the media that spread the emails of Blesa, because they were "illicitly obtained". The news led Bankia to order an internal investigation, and

980-790: The prospectus for its public stock offering had contained "serious inaccuracies". The bank is aware of lawsuit claims totalling €819 million and has set aside €1.84 billion in provisions for claims. On 17 February 2016, the bank announced it would fully compensate minority shareholders who participated in the IPO in exchange for returning their shares to the bank. They will receive 100% of their investment plus 1% compensatory interest per annum. The offer saved Bankia €400 million in legal costs. Bankia sold around €5 billion in complex financial products such as preference shares and subordinated debt to customers. Most of these products suffered enforced writedowns. The bank began an arbitration process in 2013. On 15 July 2016,

1015-406: The public in an IPO . Investment bankers found little interest in the IPO among international institutional investors. The strategy shifted to selling the stock domestically and largely to customers of the bank itself, with 98% of the initial €3.1 billion raised by domestic sales of shares. The shares of Bankia began trading on the Bolsa de Madrid on 20 July 2011, under the symbol BKIA, and the bank

1050-614: The securitization fund manager Haya Titulización from US fund Cerberus , with €23.2bn worth of assets under management, and agreed to buy Trea, an independent asset management firm in Spain with over €6bn under management. The firm has invested in several FinTechs: Rebellion Pay, a payment service provider, and Hey Trade, an online broker. The company is also a large financial investor of Spanish musicals producer, SOM Produce, founded by musical producer José Maria Cámara, and of Secuoya Grupo de Comunicación, which manages audio-visual production for Netflix in Spain. In 2014, FCC suspended

1085-430: The shares was suspended at Bankia's request. On 25 May, it was reported that Bankia SA had negotiated a further state guarantee, marking another rise in the cost of a drawn-out rescue. Bankia also revised its earnings statement for 2011, stating that instead of a profit of €309 million, it had in fact lost €4.3 billion before taxes, and asked for 1.4 billion fiscal credit to reduce its loss. The New York Times described

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1120-549: The time limit for submissions of applications for arbitration expired. On 23 February 2017, 65 individuals received sentences for misusing the company's credit cards. Rodrigo Rato (former president of Bankia, and also a former managing director of the IMF) was sentenced to four and a half years in jail, and Miguel Blesa (former chairman of Caja Madrid ) was sentenced to six years in jail. The other defendants received sentences ranging from three months to six years. Documents indicate that

1155-539: Was included in the Dow Jones Sustainability Index with a score of 84 out of 100. On 27 June 2017, Bankia agreed to acquire state-owned bank BMN (Banco Mare Nostrum) for €825 million in an all-stock deal. BMN was the result of the merger of the savings banks Caja Murcia, Caja Granada and Sa Nostra. On 3 November, Bankia announced that it was listed in the CDP Climate Change report for 2017 as one of

1190-592: Was itself owned by the government of the Community of Madrid , held controlling interest. The distribution of shares was as follows: After the merger, Bankia was initially owned by the holding company Banco Financiero y de Ahorros (BFA), and the seven banks controlled BFA. The most toxic assets from the banks were transferred to BFA, which obtained €4.5 billion from the Spanish government rescue fund FROB in exchange for preference shares with an annual interest rate of 7.75%, maturing in 2015. In 2011, Bankia offered shares to

1225-405: Was listed in the IBEX 35 . In 2012, Bankia was the third-largest lender in Spain but the largest holder of real estate assets at €38 billion. On 7 May 2012, Rodrigo Rato stepped down as chairman of Bankia SA, in order to clear the way for a rescue plan that the Spanish government hoped would persuade international investors of the country's financial stability. José Ignacio Goirigolzarri became

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