Spain readying to nationalize Bankia: report from MarketWatch.com - MarketPulse MADRID (MarketWatch) -- Troubled Spanish lender Bankia SA is set to be nationalized by the government on Wednesday afternoon, according to a report in ABC.es, a national daily. In a report on its website, the newspaper said the government will nationalize by converting prior capital injections into stock and in the end will hold a 45% stake in BFA, it's parent company. The paper said this will take place at the close of markets, citing sources. A spokeswoman for the Finance Ministry said the government would make no comment until after BFA and Bankia bank board meetings, but she denied there were any plans to speed up the announcement of a bigger clean-up for the banking sector on Friday. Shares of Bankia sank 6.6% on Wednesday, leading the bank sector lower, while the Spain IBEX 35 index fell 3.3% to 6,781.40 and yields on 10-year government bonds shot back above 6%.