Ripped-off overseas customers of Banco Espirito Santo demonstrated in central Paris on Saturday as there has been no resolution to claims that they were sold dodgy investments in the terminally sick bank when it was desperate for cash.
The group last came out in force in February in front of the Novo Banco’s Paris branch and in March they took their complaints en masse to the Portuguese embassy in the French capital.
The Association’s president, Luís Marques, said the latest demonstration will gather in one of the most important tourist spots in Paris, Place du Trocadéro, "with banners in various languages" to explain their plight and the "shameful attitude and lack of respect" from Novo Banco’s management, now controlled by António Ramalho who used to run Infraestruturas de Portugal, the maligned railway and roads company.
If there is no breakthrough in the next few days, the Association promises to "intensify the protest".
"Novo Banco is displaying a shameful attitude and disrespect towards overseas customers after it showed intent on March 17th to find a solution that would be acceptable. To date we have heard nothing," said Marques who fears the bank's management will simply rehash "the shameful proposal that was made in 2015 of transforming time deposits into Novo Banco bonds with maturity dates of 2049 and 2051. It's totally shameful when most of us are over 70, the average is 65 - this is why we're upset."
Two weeks ago, the association handed over a petition with more than 7,000 signatures to the Portuguese parliament to alert MPs to their case and to insist on an investigation into the fraudulent sales of banking products, including the establishment of a commission of inquiry.
In the document, the petitioners explain that they were duped by Novo Banco staff that they were investing in BES deposits, covered by the Bank of Portugal's €100,000 guarantee scheme, when in fact the bank sold them investments in highly risky financial products. This was 'misselling' and the Association is complaining at the refusal by Novo Banco’s management to participate in any form of extrajudicial negotiation.
The petitioners also point that out their age profile means that most will receive zero had they accepted the last proposal from Novo Banco:
"They are mostly people with little or no education or financial literacy with an average age 65-years and they consider that they did not deserve such Treatment by the country where they had entrusted their savings," said Marques.
The petitioners say that "they know that Parliament is no substitute for the courts" but they say that the Assembly of the Republic has the power to form justice through laws, recommendations, resolutions, assessments, commissions of inquiry and an inspection of events that led to their current situation.
This is why they want the State to intervene in a resolution process, in particular by looking at what they consider to have been "the fraudulent sale of financial products."
After the so-called ‘resolution’ of BES, on August 4, 2014, more than 10,000 overseas clients (mainly in France and Switzerland) lost a total of €728 million and swiftly accused the bank of having sold them risky shares in Grupo Espírito Santo companies while fooling them that these were “time deposits for non-residents.”
In 2015, overseas customers were offered a deal if they had Savings Plus, Euro Aforro and Top Income accounts. About 6,000 customers, 80% of the total, who together were owed €500 million, accepted the offer but many did not, mainly due to age.
After António Costa became prime minister in November 2015, he said that "Novo Banco would soon present a new proposal," but nothing has happened and these depositors remain out in the cold while Novo Banco’s sale to US vulture fund Lone Star offers them little hope for the future.
Comments