So which sucker bought the Bankia IPO?

Rather than complain about Rodrigo Rato, the now ex-CEO of Bankia, now designated fall guy, I have to say the guy did a pretty amazing job raising 3 billion Euros for the Bankia IPO last year. Hopefully more than a couple rich Saudis were ripped off in the process.

The funny thing is that Bankia is tanking despite the fact that most of the really bad assets were moved into a sister company as part of the IPO. So even with the shit removed, the leftovers were still shit, although it took them it bit longer to go to shit.

With Bankia likely headed to zero (Looks like our friend over at Ibex Salad, called it right last year for the IPO), the question is, which suckers bought into the IPO?

I’m getting a bit tired of all the crap. Why not take a book out of the South American playbook? If Germany is really insisting that every country is responsible for its own banks, wouldn’t it be funny if the banks in Germany suddenly discovered that their loans to Spanish banks were worth zero? jajaja (as they say here)

1. Nationalize! (Remember that whole sovereignty thing?)
2. Pay out the up to 100K deposit insurance to anyone who has a deposit
3. All other non-government guaranteed bank bonds, obligations, etc of the banks go to zero.
4. Stick all the remaining assets into a newly created bank, fob them off to the ECB and use the resulting cash to buy Spanish government bonds.
5. Use the money raised to start a massive employment program, or maybe a war against Germany.

Losers: people with deposits over 100K, private pension funds, mutual funds, sovereign wealth funds, foreign banks.

Winners: everyone else