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Many Spanish savers look to sue Bankia

Savers at Spanish lender Bankia are turning down a state-supervised compensation scheme in favour of lawsuits.

This is to prolong the ongoing scandal surrounding the Spanish bank and will complicate efforts to restore the faith in the banking system, Reuters reports.

The mis-selling disputes at Bankia and other nationalised banks in the country have created a problem for the government as it attempts to take the next step in their rescue, which is set to impose large losses on the holders of junior debt.

An arbitration process was set up by the government in order to try and end the daily protests by debt holders. However, many affected people perceive it as a trick to stop them from getting their money back.

Regardless of customers winning mis-selling claims or not, the bank will need to find the money to compensate them, which was not taken into account when its recapitalisation was calculated.

By Claire Archer