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  • It may take between EUR80 billion ($100.5 billion) to EUR100 billion ($125.6 billion) to bail out Spanish banks, according to Antonio Lopez Isturiz, head of the pan-European People’s Party bloc, whose members include Spanish Prime Minister Mariano Rajoy and German Chancellor Angela Merkel.
  • Spanish attorney general Eduardo Torres-Dulce has launched an investigation into the management of Bankia, as the troubled lender seeks EUR19 billion in government aid to avoid collapse.
  • The Financial Industry Regulatory Authority has fined Florida-based Brookstone Securities, its ceo and one of its brokers after finding that they made fraudulent sales of collateralized mortgage obligations to unsophisticated, elderly and retired investors.
  • Bank executives are re-examining their business models with an eye on greater operational efficiency as they face regulatory reform and a sluggish economy, according to KPMG.
  • Sheila Bair, former chair of the Federal Deposit Insurance Corp., has been named to head the Systemic Risk Council, a private volunteer group formed to monitor regulatory reform of the U.S. capital markets.
  • Timothy Mayopoulos, the new ceo of Fannie Mae, says he will recuse himself from any case between the agency and Bank of America over its forced repurchase of defaulted mortgages in which he was involved in his capacity as general counsel for the government-sponsored enterprise.
  • Lloyds Banking Group is selling £809 million ($1.24 billion) of distressed Australian property loans to a joint venture formed by Morgan Stanley and the Blackstone Group at less than half their original value.
  • Troubled Spanish lender Bankia may get less than the EUR19 billion ($23.6 billion) that it is seeking.
  • Fannie Mae has appointed Timothy Mayopoulos as president and ceo, effective June 18. Mayopoulos is currently Fannie Mae’s executive v.p., chief administrative officer and general counsel.