The embattled Spanish government has begun the process of financial sector reform via the nationalization of BFA, which indirectly means the government has taken a 45% stake in a publicly traded company, Bankia. While Prime Minister Mariano Rajoy is set to announce further measures to strengthen the banking sector on Friday, with the BFA-Bankia takeover, the Spanish government is preparing to take control of the biggest chunk of toxic real estate assets in the troubled Iberian nation, taking the first major steps to try to fix its ailing financial sector.
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