Spain’s bank restructuring fund (FROB) said late on Wednesday it would not bail out the Spanish affiliate of Andorra’s Banca Privada d’Andorra (BPA) Banco Madrid, clearing the way for insolvency proceedings at the lender. Banco Madrid began bankruptcy proceedings on Monday after customers rushed to empty accounts in the wake of U.S. allegations its parent BPA laundered money for international criminal gangs. The Bank of Spain has frozen all financial activity at Banco Madrid while anti-corruption prosecutors investigate possible fraudulent activities at the lender.