CatalunyaCaixa Seeks €1.7B From Spain

CatalunyaCaixa will seek €1.7 billion of state aid under new Spanish government rules to boost banks capital.

CatalunyaCaixa will seek €1.7 billion of state aid under new Spanish government rules to boost banks capital, Reuters reports. The regional savings bank will review options to replace the government as a shareholder in the medium term, including an employee-ownership scheme, a convertible bond issue, private investors or a merger with other banks. Novacaixagalicia, the fourth-largest savings bank in Spain, will also apply for capital from the state fund created to oversee the restructuring of Spain’s regional banks. It has not specified how much it will request.

Click here for the story from Reuters.