International Airlines Group, parent of British Airways, lost a member of its board this morning when Rodrigo de Rato y Figaredo resigned over the banking scandal in Spain.
Rato, as he is known in Spain, is chairman of disgraced Spanish bank Bankia or Banco Financiero y de Ahorro.
A former head of the International Monetary Fund and member of the Spanish parliament, Rato is one of 33 current and former officers of the bank facing allegations of fraud, price fixing and falsifying accounts.
Banco Financiero y de Ahorro is the single biggest shareholder in IAG with a 12% stake. IAG was formed by the merger of BA and Iberia in 2010.
Rato’s resignation was announced in a brief IAG statement this morning.
Bankia is blamed for the current banking crisis in Spain which has necessitated a euro100 billion bail-out. Its stake in IAG is understood to be for sale.