It has taken since 2014, but finally, legal representative of those depositors who lost at least €400 million in the cynical BES ‘commercial paper’ scam have got a meeting lined up with the Government, the Bank of Portugal and the Stock Market and Securities Regulator (CMVM) all around one table.
Lawyers representing the ‘Associação do Indignados e Enganados do Papel Comercial’ aka the totally pissed off depositors, said they are confident of getting a deal and that their clients’ money will be returned.
The new government is keen to settle the matter with Prime Minister António Costa earlier sharply criticising the Bank of Portugal for unduly dragging out resolution proceedings, adding that someone is responsible and the problem needs to be resolved.
The scam happened during 2014 with Banco Espírito Santo mangement devising a scheme to contact the bank's better off customers and persuade them to switch their money from deposit accounts to risky commercial paper, basically 'loans' to companies in Grupo Espírito Santo which then went bust along with the bank.
The Association’s lawyers said this meeting will be to find out what is on offer from each of those it holds responsible for the rip-off.
In June 2015, the ever-evasive Governor of the Bank of Portugal, Carlos Costa, said in parliament that the solution to the BES customers’ problem must come from the Stock Market and Securities Regulator.
Carlos Costa reckoned as the BES customers had bought commercial paper, this was not down to the Bank of Portugal to regulate. The Stock Market and Securities Regulator failed to agree this point and a long period of non-communication followed which was hardly helpful in resolving matters.
The government at the time had no interest in the matter, with the finance minister and the Prime Minister Pedro Passos Coelho taking deep cover while claiming it was 'a private commercial matter.'
There are an estimated 2,040 BES customers involved in this mess. They have lost over €400 million and would like it back.
Comments
the complication has always been the big fella's. A couple of billion is owed to them. And Portugal's ever ballooning public sector debt. And will everyone get all their money back with the missing interest ? And who gets paid first and who is intended to die beforehand? And ....
As so often, it again raises the question, to a north European, - would you trust a Portuguese banker or their banking system as far as you could throw them? But then, in their defence, why should they be any different to any other Portuguese? No country breeds bankers.