Friday, February 24, 2017

Ex-IMF boss jailed for more than four years after embezzling millions from banks he ran

Rodrigo rato was jailed for his part in a multi-million embezzlement scandal at Bankia

Rodrigo Rato was sentenced to four and a half years in prison after being found guilty of using undeclared corporate credit cards to fund a lavish lifestyle as his banks ran into the red. 


Rato, 67, was among some 65 former bankers convicted of making undeclared card purchases to the tune of £10.1m from Spanish banks Caja Madrid and later Bankia, between 2003 and 2012.


Bankia nearly collapsed in 2012, and was only rescued by a huge public bailout. 


Rato denied any wrongdoing and claimed the credit cards were permitted under his pay packages. 


He resigned as head of Bankia shortly before it"s near collapse five years ago. 


Rato was head of the IMF between 2004 and 2007, having previously served as Spain"s economic minister. 


Caja Madrid was one of Spain"s biggest banks before merging with several others to form Bankia in 2010.


In 2012, Bankia posted profits of €328m, only to revise that figure two weeks later to a loss of €4.3bn.


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