AF1,here is another perspective on the central planners C.R.A.P(cash raped and pillaged) to keep banks flush and bonus complete.I love the G20 slipping in of these dodgy little addendum to meeting statements.Template appears to be holding form with that 100,000 Mark bobbing up again.
Your diehard uber trusting devotees of skolonomics cream themselves at such cb talk-fests.I think they get off on being lied to and swindled?.Love to hear their desperate pleas when their A/c gets leveled over a long (bank holiday)weekend.
Profits to all.BMD
Espirito Santo’s Swiss Demise May Ensnare Depositors By Cindy Roberts and Anabela Reis Sep 20, 2014 12:42 AM ET 0 Comments Email Print Facebook Twitter Google+ LinkedIn Save Swiss regulators started bankruptcy proceedings against a private bank affiliated with Portugal’s Espirito Santo family as the collapse of the financial empire threatens to ensnare depositors. Banque Privee Espirito Santo SA was over-indebted, the Swiss Financial Market Supervisory Authority, or Finma, said in a statement on its website today. The bank is in a position to “rapidly and fully reimburse” deposits of as much as 100,000 Swiss francs ($107,000), which make up most of its accounts, the regulator said. Clients with deposits above that amount will have to wait for the bank’s liquidation to find out if they will get their money back, Finma said. Banco Espirito Santo SA, the publicly traded lender of the Espirito Santo empire, was forced to take a bailout last month after regulators uncovered potential losses on loans to other companies tied to the family and ordered the lender to raise capital. Portuguese regulators are investigating the sale of securities involving Banco Espirito Santo and how the group’s companies helped fund one another. Stephane Haefliger, a spokesman for Banque Privee Espirito Santo in Pully, Switzerland, wasn’t immediately available to comment. Portugal’s central bank said in a statement today that it barred Banque Privee’s Portuguese unit from providing loans and receiving deposits to ensure the branch has enough cash to reimburse depositors. A spokesman for Banque Privee’s Portuguese unit who asked not to be named in line with company policy referred to the Bank of Portugal statement and declined to comment further. Finma said it continues to investigate the Swiss bank’s role in distributing securities and financial products of the Espirito Santo group. A number of the group’s holding companies have defaulted on their payments in recent months. ‘Serious Problems’ Although Banque Privee ’’was not considerably exposed to those holding companies, the loss of confidence following the group’s collapse posed serious problems for the Swiss company, particularly since it was not included in the restructuring measures ordered by the Portuguese authorities for the Portuguese bank,’’ Finma said. The Swiss private bank’s balance sheet dropped to 80 million francs from 600 million francs after it said it was selling its Spanish, Portuguese and Latin American client assets to CBH Cie. Bancaire Helvetique SA in July. It said at the time that it was winding down the bank, a process Finma will now oversee. ES Bankers (Dubai) Ltd., a private bank in Dubai, froze deposits yesterday, attributing the decision to the failure of Banque Privee to repay debts. Both the Swiss and the Dubai banks were owned by Espirito Santo Financial Group SA, a Luxembourg-based holding company under creditor protection. ESFG was also a shareholder of Banco Espirito Santo. Banco Espirito Santo was Portugal’s biggest lender by market value before its 4.9 billion-euro rescue. It has since been split into a “bad” bank and a good bank that was created from healthy assets and named Novo Banco SA. Miami Probe “You’re looking at, potentially, a tough recovery process” for anyone who invested in the bad bank, said Roger Francis, an analyst at Mizuho International Plc. That may take time with “some of these complicated entities in jurisdictions where things may move very slowly.” The U.S. Securities and Exchange Commission and Federal Deposit Insurance Corp. are among agencies investigating Espirito Santo Bank, the lender’s Miami-based unit. To contact the reporters on this story: Cindy Roberts in Zurich at [email protected]; Anabela Reis in Lisbon at [email protected]
