Remember in May 2008 when all the CEO's came out publicly and stated that everything was fine. Then a few months after Lehman went bust. I see the same thing happening in Spain.
After taking a huge loss of 19.2B Euros Bankia CEO stated they are completely liquid and solvent and they are the only bank that can pay back their rescue funds.
FACT CHECK TIMELeverage: Has a leverage ratio of 25-to-1. Is this bad? Lehman was 30-to-1 when it collapsed. (note these are using 2011 numbers. I will update this when they publish 2012 financials.)
Interest Coverage: 1.0
The lower the ratio, the more the company is burdened by debt expense. When a company's interest coverage ratio is only 1.5 or lower, its ability to meet interest expenses may be questionable.