Former Head of IMF to Face Trial in Spain for Alleged Fraud in Bank IPO

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A former head of the International Monetary Fund looks set to appear in court in a high-profile trial into alleged fraud in the initial public offering which raised investment capital for one of Spain’s largest banks, a statement by Spain’s National Court said on Thursday.

Rodrigo Rato, who had also been Spain’s economy minister for eight years until 2004 and left his post as managing director of the IMF to become president of Bankia, a Spanish lender whose losses following the 2008 financial crisis saw it nationalized and bailed out for 18 billion euros ($24 billion), will face trial in November, a court statement said.

The trial for the IPO of Bankia, which came into being with the merger of seven lenders including Caja Madrid, will be the second time Rato sits in the dock facing serious criminal charges.

Rato was found guilty of embezzlement and sentenced to four and a half years’ imprisonment in February 2017 after having been under judicial investigation in a number of alleged fraud cases.

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