-Bank of Spain to acquire Novacaixagalicia.
Global Banking News - 09 September 2011
Spain's Fund for Orderly Bank Restructuring (FROB), which is controlled by Bank of Spain, will inject nearly EUR2.5bn into ailing savings bank Novacaixagalicia at the end of September to boost its capital and meet the new minimum solvency requirements, according to a report by Expansion.
The FROB can run the savings bank for up to five years, but it may resell its stake in Novacaixagalicia back to the financial entity within the next two years, the report said.
The bank has hired Pedro Luis Uriarte, the former chief executive officer of Banco Bilbao Vizcaya argentaria SA (BBVA) (BBVA.MC) (NYSE: BBV), and Juan Arena, former chairman of Bankinter SA (BKT.MC), although their positions have not been determined yet.
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