LISBON—Banco Esp�rito Santo SA creditors whose credit were neither subordinated nor transferred to the “good bank” created from the collapsed lender should have the right to recover 31.7% of their money, a report ordered by the central bank has found.
The family's prized asset and Portugal's second-biggest bank, Banco Esp�rito Santo SA, collapsed this month, and Esp�rito Santo's main holding companies have filed for bankruptcy amid allegations of accounting problems and fraud.
Portugal's central bank took control of Banco Espirito Santo SA, once the country's largest lender by market value, in a 4.9 billion-euro ($6.6 billion) bailout that will leave junior bondholders with losses.
Several U.S. regulatory agencies are investigating the Florida unit of Banco Esp�rito Santo SA, according to bank officials, the latest front in a sprawling, multinational effort to untangle the finances behind the collapsed Portuguese business empire.
And the Goldman loan is under review by Portuguese regulators, which are trying to untangle the web of financial arrangements surrounding Banco Esp�rito Santo at the time of its implosion, a person familiar with the inquiry said. The situation ...
LISBON—Portugal's central bank has accused 15 officials from collapsed Banco Esp�rito Santo SA of harming the bank's depositors, investors and creditors by selling the debt of its parent when it was already known the lender was in trouble.
Shares in Banco Esp�rito Santo SA plummeted as much as 50% Thursday while its bonds also plunged, suggesting the most resilient shareholders are finally yanking their money out of the troubled lender in a long-drawn-out Portuguese banking drama.
Banco Espirito Santo SA's bailout has left buyers of default insurance on the Portuguese lender's subordinated bonds holding ineffective contracts after a ruling by the International Swaps & Derivatives Association.
Banco Esp�rito Santo SA's largest shareholder said Saturday that it has chosen an outsider to head the bank and the current head of Portugal's debt agency to become its chief financial officer, as it tries to distance the lender from troubles at its ...