Portugal’s Council of Ministers today approved the re-appointment of Carlos Costa for a second five-year term as governor of the Bank of Portugal.
In a press conference at the end of today’s cabinet meeting, the Minister of the Presidency, Luís Marques Guedes, said that the appointment was made following Carlos Costa’s report to Parliament about the Bank of Portugal’s actions prior to the BES collapse, and a report on that hearing having being discussed by the Council.
Costa was appointed to his first five-year term in 2010 by the previous socialist government and has overseen a financial sector where many have been able to run rings around him.
According to the Guedes, "it is clear to everyone that the majority of MPs seconded the proposal that the government designated Dr Carlos Costa for a second term."
Questioned on whether the reappointment of Carlos Costa was approved unanimously, Guedes said rather enigmatically that "all decisions of the Council of Ministers are taken by all the ministers."
In this awkward press conference, Guedes was asked about today's protests in front of the Council of Ministers meeting by those who consider themselves ripped off by Banco Espírito Santo.
Guedes said he was "unaware of this initiative," and stated that this matter is the responsibility "of the financial supervisor and regulators as a whole" and not related to "any decision of the Government."
Carlos Costa is a deeply unpopular choice and many in financial services (around 45% of those questioned) have no respect for him at all when asked about Costa’s regulatory role, citing the many failures in the financial system in recent years and the supercilious way in which Costa has treated those disadvantaged by his vacillation and lack of grasp.
Costa’s reappointment is a safe bet for this government as he does as he is told, mainly over the BES crash and aftermath, and at least has ensured that the government has avoided too much blame.
