A key part of the Banco Privado Português case is over with a judges' decision that has shocked many of Lisbon’s financial community: João Rendeiro, Paulo Guichard and Salvador Fezas Vital all have been acquitted.
Rendeiro’s statement issued today read, "This decision proves that justice is done in the courts and not in the media."
The judges led by Nuno Salpico acquitted Rendeiro, the former chairman of Banco Privado Português, as well as two former managers Paulo Guichard and Salvador Vital Fezas of the charge of aggravated fraud.
The trio faced two to eight years in prison if found guilty.
The BPP managers were accused of luring shareholders into a capital increase for the bank which they knew already was bankrupt.
The investors said that they were persuaded to invest by their branch managers and did not realise that some of their money was being used to pay off loans for an associated bank Privado Financeiras which owed JP Morgan €200 million.
The various investors in BPP claim that they had lost €40 million, this case now has been dismissed but the trio faces other charges which have yet to be heard.
The collapse of the bank cost the government €450 million in deposit guarantees.
The Public Ministry will appeal against the judgment that acquitted BPP’s former chairman João Rendeiro, and his two co-defendants
For the background to the case, see:
