Portugal Puts Up $6.6B Loan To Rescue Failed Banco Espirito

Law360, New York (August 4, 2014, 1:05 PM EDT) -- Portugal’s second-largest lender, Banco Espirito Santo SA, will split up under a rescue plan backstopped by €4.9 billion ($6.6 billion) in state money after the bank failed to weather losses on its exposure to the troubled Espirito Santo financial group, the Portuguese central bank said Sunday.

Banco de Portugal’s plan will see the healthy assets and businesses of BES spin off into a new, healthy bank with a rump entity remaining to wind down problem assets and shift losses on to shareholders and subordinated creditors. The...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.