Tuesday, September 16, 2014
Lloyds Banking Executive to Lead Troubled Portuguese Lender
Tue., September 16, 2014
The Bank of Portugal has appointed a new leader to run the ‘‘good’’ bank created after the bailout of the Portuguese lender Banco Espírito Santo, after the unexpected resignation on Saturday of its top management, the International New York TimesDealBook blog reported. Portugal’s central bank chose Eduardo Stock da Cunha on Sunday to take over as chief executive of Novo Banco from Vítor Bento, who stepped down on Saturday along with his two main lieutenants. Mr. Bento and his team resigned abruptly after only two months in charge, citing the fact that their mandate had “significantly changed” since Mr. Bento was appointed in July to run Novo Banco’s predecessor, Banco Espírito Santo. Mr. Stock da Cunha was set to return to Lisbon from London, where he has been an executive at Lloyd’s Banking Group. Mr. Stock da Cunha previously worked for Santander Totta, the Portuguese subsidiary of Banco Santander, Spain’s largest bank by assets. The abrupt management reshuffle is another blow for Portuguese regulators, who have been struggling to engineer a rescue of Banco Espírito Santo after the bank was undone by its exposure to its struggling corporate parent. The healthy assets of the bank, one of Portugal’s largest financial institutions, were transferred in early August to Novo Banco as part of a bailout and with a view to then sell Novo Banco to private investors.