Spain's bailout plan is dismissed by the European Central Bank

The European Central Bank expressed their strong disapproval with Spain's strategy to bailout Bankia by utilizing EUR 19 billion in sovereign debt, which may jeopardize the bank to break the law prohibiting financing governments by the central bank. Moreover, Bankia has been severely criticized when its parent company announced its promise to provide a pension package totaling at EUR 14 million to its former O.C. executives. The circumstances did not benefit the country and its EJR rating degraded from BB- to B.