European stocks were dominated by bearish sentiment. The euro dropped to near 11-month lows on concerns about Spain's ailing banking sector following the announcement of bailout plans for troubled lender Bankia. Spain's fourth largest lender Bankia said late Friday that it needed $23.8 billion in state aid to shore itself up against its bad loans – a far bigger bailout than expected. Spain's Prime Minister Mariano Rajoy said the government had no choice but to bail out Bankia, "because the alternative was collapse." Rajoy also repeated there would be no funds sought from Europe to rescue Spanish banks. Shares in Bankia slumped by as much as 29% when they resumed trading Monday, though the losses narrowed and in afternoon trading it was down 13.38% at 1.36 euro. Spain's main IBEX 35 stock index closed down 2.17%.