Lárguese o gobierne señor Rajoy VI: Booooom!!!

The Scream Painting with Nuclear Explosion

Zero Hedge ECB Calls Spain’s Bluff… Or Does It? And Did Europe Just Check To The Fed?

Financial Times ECB rejects Madrid plan to boost Bankia Patrick Jenkins in London, Ralph Atkins in Frankfurt and Miles Johnson in Madrid

Google.es financial times ECB rejects Madrid plan to boost Bankia

A Spanish plan to recapitalise Bankia, the troubled lender, by indirectly tapping the European Central Bank for cash, was bluntly rejected as unacceptable by the ECB, European officials said.

News of the rejection came as Spain faces elevated borrowing costs in the bond markets, tries to persuade investors it can contain problems in a banking sector weighed down by €180bn of bad property loans and, on Tuesday, saw its central bank governor stand down early.

Madrid had floated the unorthodox idea over the weekend of recapitalising Bankia by injecting €19bn of sovereign bonds into its parent company, which could then be swapped for cash at the ECB’s three-month refinancing window, avoiding the need to raise the money on bond markets…