The ECB Contradicts Earlier Reports Over Assisting Spain’s Troubled Banks

More confusion in the Euro Folly Zone.

“The European Central Bank denied it has rejected a plan floated by the Spanish government to recapitalize Bankia, saying it hasn’t been approached.

“Contrary to media reports published today, the European Central Bank has not been consulted and has not expressed a position on plans by the Spanish authorities to recapitalize a major Spanish bank,” the Frankfurt-based ECB said in an e- mailed statement. “The ECB stands ready to give advice on the development of such plans.”

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