Spain mounts bank rescue

Spain mounted its first major bank rescue in 16 years as the state took over Caja Castilla-La Mancha after efforts to arrange its purchase by a rival failed.

The Bank of Spain said it appointed administrators to run the savings bank after removing its management. As part of the rescue, the government pledged to guarantee as much as 9 billion euros of the lender's liabilities.

"There must have been no other way out," said Jose Carlos Diez, chief economist at Intermoney SA in Madrid. "This was not the preferred option."