Former IMF Boss in Spain Court Over Alleged $24 Billion Bailout Fraud


Former IMF managing director Rodrigo Rato, center right, arrives at the National Court in Madrid, Spain, Thursday, Dec. 20, 2012. Rato, a former deputy prime minister was to answer questions over his stewardship of a major Spanish bank, Bankia that had to be nationalized and bailed out for $24 billion earlier this year. Rato was one of 33 former board members of the bank named in a criminal probe. (AP Photo/Andres Kudacki)

Published: Friday, December 21, 2012 at 11:51 p.m.
Last Modified: Friday, December 21, 2012 at 11:51 p.m.

MADRID | Former IMF managing director Rodrigo Rato has appeared before Spain's National Court to answer questions over his stewardship of Bankia, a major bank that had to be nationalized and bailed out by the state for €18 billion ($24 billion).

Rato was one of 33 former board members of Bankia SA named in a criminal probe by Judge Fernando Andreu.

Prosecutors have accused them of falsifying the bank's accounts when it went public a year ago, among other alleged offenses. The judge has not formally charged Rato with any crime.

Rato took over the bank — a merger of seven unlisted savings banks laden with toxic property investments — in 2010. In May, Bankia replaced him and requested a bailout.

He was greeted by protesters on entering the court Thursday.

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Copyright 2012 The Associated Press.

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