The decision deadline is at midnight tonight for those non-resident BES customers who were sold commercial paper on the advice of BES managers and staff, as instructed by management.
Should those who subsequently lost all their money accept the Novo Banco solution to their financial woes, or continue down the legal road to reclaim their deposits in full?
The commercial solution proposed by Novo Banco’s executive is conditional on this customer group dropping court action and only then can they take up the offer of getting back just 60% of their money, maybe 90% after six years depending on the bank’s performance.
In late August, Novo Banco claimed that over 50% of this group of customers already had accepted its proposal, 3,500 of the 7,000 customers involved but the depositors’ action group said this statement was deceptive as the 50% did not represent 50% of the total money lost, some €720 million.
Novo Banco has not issued any update on the percentage acceptance level and many depositors complain thay they have been subject to the old ‘mushroom treatment’ ploy with Novo Banco keeping them in the dark.
Earlier in September the stock market regulator stated that Novo Banco was to send out a simplified disclosure document outlining the commercial solution proposed to customers but many claim still to be ignorant of the offer details as they have received no such documentation.
The overseas depositor’s’ action group says that the commercial solution from Novo Banco does not fit their risk profile as it is far too complex.
The depositors’ organisation also criticises Novo Banco’s ploy of making any acceptance of the scheme dependent on their members agreeing that they opted to buy shares in Grupo Espírito Santo companies rather than keep their hard earned money in regulated deposit accounts.
