Ongoing troubles in Europe could force another bank there to sell off a key U.S. holding.

The $4.3 billion-asset City National Bank of Florida said Wednesday that its parent company, Bankia, is among a number of institutions that reached an agreement with the European Union and Spain's government to recapitalize after accepting bailout funds. The restructuring would require the Spanish banking company to sell noncore assets and holdings outside of Spain, including City National, within four years.

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