Bankia takes bailout as retail investors brace for impact

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Bankia takes bailout as retail investors brace for impact

Spain is set to pump €4bn-€5bn of capital into Bankia after the group posted a €4.45bn loss in the first half, having suffered a 10% decline in deposits and an 11% increase in non-performing loans. The news came as a Royal Decree established a legal framework for dealing with troubled banks and the creation of a Spanish bad bank was approved.

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