EU ‘aware’ that Spanish bailout did not protect fraud victims

On 17 April 2013 EUObserver reported that EU commission is "aware" that a bailout agreed with the Spanish government means thousands of people will never get their savings back, but says it is up to courts to help the conned depositors.

When it negotiated the terms of Spain's up-to-€100-billion bailout for its ailing banking sector, eurozone finance ministers, the European Commission and the European Central Bank (ECB) said these banks should impose losses on their shareholders.

In theory, these shareholders should be rich investors or other banks. In practice, they are tens of thousands of people from rural areas, pensioners, parents saving for their children who were tricked by their local "cajas" - the savings banks later merged into Bankia - to change their deposits into these "preferred shares."

• Primary Source

ESO: Background information: Bank of Spain rejects audit allegations http://www.europeansources.info/record/bank-of-spain-rejects-audit-allegations/

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