Spanish banking fiasco saps faith from small savers
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Sir, After the temporary celebrations of the European Football Championship, Spain is facing a difficult situation. Banks are being bailed out and the economic recession is in full swing.

My case is one example of the many Spaniards who have lost faith in their country. I am a 75-year-old woman and have all my savings in Bankia. This private bank was born in 2011 after the fusion of several state banks, including Caja Madrid, my bank for more than 50 years. Last year, I received a call from my branch and bought preference stock of Caja Madrid. I was not told about the conditions of this financial product, which was presented as a safe five-year fixed-term deposit. Today, I know I was cheated and my savings have been reduced by half as their value varies according to the stock market.

More than 90,000 small savers of the now bailed-out bank, Bankia, have lost their lifetime savings. The scandal is even more hurtful as Caja Madrid has belonged to the state for decades, being ruled by politicians such as Rodrigo Rato, former vice-president of the government. Last week, the High Court opened a fraud probe against Mr Rato and other directors in relation to the stock market launch of Bankia, but there is no allegation of fraud of small savers in the selling of preference stock. Despite the numerous demonstrations nothing has been done yet by our current prime minister.

Personally, I have lost trust in our political institutions. I am old and have lived through the Spanish civil war and the beginnings of our democracy; I have lived through years of repression and others of freedom and great social achievements. I believe the High Court will rule out this case – as these days justice is only second to the economy or to politics. Years have passed by but we have not learnt our lesson.

The lack of liability in the public sector has led Spain to the Bankia fiasco and now a backdoor exit will bury many years of political corruption.

Regardless of the verdict of the court, the small savers will be the victims of the fiasco. We only wished to open a safe deposit at the wrong place and time.

Benita Pastor, Madrid, Spain