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Monday, September 15, 2014

Latest news re Banco Espirito Santo: Leadership Team Overseeing Portuguese Bank Resigns

Per www.globalinsolvency.com:


Mon., September 15, 2014
The “good” bank created after the bailout of the Portuguese lender Banco Espírito Santo last month was dealt a setback on Saturday when the three-person management team selected to turn around its business abruptly resigned, theInternational New York Times DealBook blog reported. In a joint statement on Saturday, the chief executive of Novo Banco, Vítor Bento, and his two top lieutenants, José Honório and João Moreira Rato, said they were resigning because their mandate to run the bank had “significantly changed” since they were appointed to run its predecessor, Banco Espírito Santo, in July. Portuguese regulators were forced to engineer a rescue of Banco Espírito Santo in August after the bank was undone by its exposure to its struggling corporate parent. The bank, one of Portugal’s largest financial institutions, was shut down and its healthy businesses were transferred to Novo Banco. The bank had been run for decades by the Espírito Santo family as part of complex web of family-controlled companies, but regulators raised questions this year about “irregularities” in its corporate parent’s finances. Several businesses controlled by the family have since sought creditor protection.

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