Comment on Bank scandal tarnishes powerful Portuguese family

Bank scandal tarnishes powerful Portuguese family

[...] one of Europe's last banking dynasties is being stripped of its wealth and influence amid accounting irregularities, huge unreported debts, and a police investigation. The scandal bears the hallmarks of the recent European financial crisis, and the difficulties at Banco Espirito Santo — Portugal's largest bank — sent a shiver through global markets this month as investors feared Europe's closet contained more skeletons. The family's three holding companies, unable to repay debt built up by the tourism-to-farming-to-health care empire, have sought legal protection from creditors. The sometimes close connections in southern Europe among banks, politicians and public institutions discourage transparency — a feature exposed by the recent crisis, Barroso noted. [...] media reports began documenting financial shortfalls at another two holding companies, which then conceded they also were unable to pay money they owed. Regulators say Banco Espirito Santo account holders won't lose their money, though investors — including Banco Espirito Santo — who lent money to other businesses controlled by the family may not get all theirs back. The central bank, the Lisbon stock exchange and Portugal's attorney general are all investigating how Salgado juggled money between the various family businesses and whether he misled regulators and investors.

 

Comment On This Story

Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

More World News