Spanish markets got clubbed today, as PM Mariano Rajoy was announcing a new nationalization scheme for Bankia.

But that was mostly expected.

What freaked out investors was a new report in El Mundo that suggested a new, much-more expensive fire needed to be put out.

In its latest Euro Areas: Sovereign Debt Crisis Update note, Citi summarizes the report:

Reports suggest Spain may need an extra €30bn for banks - Spain may need another €30bn to clean up its banking system on top of the €19bn required by Bankia according to El Mundo. The money would be split along the following lines: €10bn for a balance sheet cleanup and €20bn to raise capital levels, citing

government sources. The newspaper argues that the €30bn would go mainly to CatalunyaCaixa, Novagalicia and Banco de Valencia. The newspaper also quoted government sources suggesting that, should the Greece crisis continue and Spanish 10-yr bond spread remain around 500bps, Spain could seek aid from European funds.

And for more on today's big Spanish market selloff, click here >