Portugal’s banks that part financed the rescue of BES through their enforced contributions to the Resolution Fund want to be involved in any decisions relating to the sale of ‘good bank’ Novo Banco.
Monitoring can be achieved through the creation of a committee that will allow Portuguese banks that fare exposed to risk due to the bailout of BES to have the inside track on any decisions over Novo Banco’s sale which already is being set up by the Bank of Portugal (pictured).
The idea has been delivered to Carlos Costa at the Bank of Portugal, the governor who decided to rescue BES by using the resources of the Resolution Fund but Costa has not yet responded to the idea which he may find somewhat inconvenient.
Portugal’s banks are intent that the sale of Novo Banco reaches at least a level that will cover the €4.9 billion injected from the Resolution Fund which they funded.
The quick sale of Novo Banco has been advocated by the banks and the process is already underway with BNP Paribas advising the Bank of Portugal.
Comments
http://uk.reuters.com/article/2014/09/02/uk-espiritosanto-debt-idUKKBN0GX1IL20140902
This is the sort of thing which must panic potential buyers of anything Espirito Santo. Particularly as there is now some very nasty types circling round -- looking for blood.
Not just those who bought into BES and GES etc earlier in the year and who now have proof the Bank of Portugal nor anyone else did any regulation of BES .. but now the vulture funds. Paying just 2% of the value of an investment - but entitled to 100% payback as Argentina has found out.
Hence Pres. Cavaco Silva's concerns ... just what Budget Rectification 2015 is he supposed to be signing off ? An imaginary one (to be further rectified) - or something more realsitic ?