Is Spain next - Spain says help not needed to save banks

Spain's prime minister has insisted his country will not need an international rescue for its banks as investors recoiled at a Euro 19bn rescue of Bankia, sending the countrys borrowing costs over Germany's to the highest level since the start of the euro.

Bankia, Spain's second-biggest bank by local deposits, would have collapsed if Madrid had not agreed to the rescue last week, Mariano Rajoy warned, adding that this would have risked bringing down Spain itself.

We are not going to let any regional government fall, or any bank fall, because they can't ... if that happens the country will fall, Mr Rajoy said at an unscheduled news conference, calling again on Brussels to restore confidence in the currency union ... READ MORE

Released by the Financial Times - 28 May 2012