The US controlled ‘good bank’ Novo Banco has told staff that 400 more face the chop as 73 branches must close this year.Voluntary redundancies and early retirement is on offer to Novo Banco staff members who are faced with a contracting banking sector when looking for equivalent jobs.
The staff council met board members on Tuesday this week but little can be done to stop the closure of unprofitable branches as Lone Star, the bank’s new 75% shareholder, applies pressure to reduce costs and to make massive provisions for what are now classified as 'toxic loans' - despite Novo Banco being set up with only the 'good assets' from the defunct BES.
The staff council met board members on Tuesday this week but little can be done to stop the closure of unprofitable branches as Lone Star, the bank’s new 75% shareholder, applies pressure to reduce costs and to make massive provisions for what are now classified as 'toxic loans' - despite Novo Banco being set up with only the 'good assets' from the defunct BES.
A statement from Novo Banco reads that 30 branches will be closed down by the end of April, as it strives to cut staff numbers.
Novo Banco owner, Lone Star, is tidying up the business and making full use of the soft deal it negotiated with the Bank of Portugal in which taxpayers are underwriting this now-private business.
Novo Banco was created by the Bank of Portugal in a misguided and eye-wateringly expensive move that cost €3.9 billion to set up and looks like it will cost another €3 billion plus when the 2017 losses are revealed.
Novo Banco owner, Lone Star, is tidying up the business and making full use of the soft deal it negotiated with the Bank of Portugal in which taxpayers are underwriting this now-private business.
Novo Banco was created by the Bank of Portugal in a misguided and eye-wateringly expensive move that cost €3.9 billion to set up and looks like it will cost another €3 billion plus when the 2017 losses are revealed.
Lone Star was handed 75% of the business for €0 last October and can sell the bank in October 2020. At this point the monumental cost of creating the bank will be crystalised, as well as the cost of underwrite losses and indemnifying the bank from any legal actions that result in payouts.
One such legal action is currently in play with major investment funds baying for the head of Carlos ‘Mr Magoo’ Costa whose transfer of €2 billion in senior bonds back to ‘bad bank’ BES, rendered their investment worthless. (HERE)
