Bankia, the new retail Spanish bank made up of Caja Madrid and six other savings banks, is creating a bad bank to hold toxic assets to make its listing later this year more attractive. Bankia stated in a regulatory filing that it will retain repossessed land and other impaired assets in Banco Financiero y de Ahorros, an existing legal entity. The move to establish a bad bank follows a similar one by La Caixa.
