LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Ex-CFO of failed bank BES sues Bank of Portugal, KPMG for $4.9 bln

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Fri, Dec 14, 2018
11:20 pm
Reuters
RELATED NEWS
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21
Budget 2021: HDFC Bank, other banks hail FM Sitharaman for these reasons; check details Budget 2021: HDFC Bank, other banks hail FM Sitharaman for these reasons; check details

Banco Espirito Santo`s former finance director is suing the Bank of Portugal and KPMG, demanding they pay the state 4.3 billion euros ($4.9 billion) for allegedly falsifying its accounts before the bank`s 2014 collapse.

Amilcar Morais Pires filed the lawsuit at the Lisbon Administrative Court on Friday, alleging in papers seen by Reuters that the central bank and KPMG "imposed inflated losses," on Banco Espirito Santo (BES).

The Bank of Portugal and KPMG both declined to comment on the action by Morais Pires in which he alleges that the central bank and the auditor of BES had recognised "excessive provisions and inexistent losses" which led to the failure of BES.

Various lawsuits by BES bondholders and depositors have challenged the way the central bank`s forced "resolution" imposed losses on them, but the new case is the first to allege the regulator and BES auditors deliberately triggered the collapse, which was Portugal`s largest bank failure.

BES folded in 2014 under a mountain of debts accumulated by its founding Espirito Santo family, forcing the central bank to launch a 4.9 billion euro rescue.

Its healthy operations were carved out to form Novo Banco, which is now owned by U.S. private equity firm Lone Star, while the bad debts are being wound down.

Morais Pires himself is under investigation over the sale by BES of debts issued by the Espirito Santo family to BES bank clients before the collapse. He has not been formally accused and his lawyers say he is not guilty.

His lawsuit alleges that the central bank and KPMG knew for several years about the relationship between BES and the holding companies of the Espirito Santo family, which had massive debts.

"This explains the exaggerated reaction by both against BES ... when they perceived that they could be accused of having been too complacent with BES and its leader, (CEO) Ricardo Salgado," the lawsuit said.

Salgado has been named as a formal suspect on suspicion of fraud, tax evasion and corruption, charges which he denies.

When the central bank intervened in BES in August 2014 it said the cause was a six-monthly loss of 3.57 billion euros that reflected higher exposure to the debts of the family holding company, violating central bank orders.

That forced BES to raise provisions, lowering its capital ratio below the legally required minimum, the lawsuit alleges.

These provisions were annulled "within less than a year, confirming the illegality of creating them" it adds.

($1 = 0.8855 euros)

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21
Budget 2021: HDFC Bank, other banks hail FM Sitharaman for these reasons; check details Budget 2021: HDFC Bank, other banks hail FM Sitharaman for these reasons; check details

LATEST NEWS

7th Pay Commission Latest News: How pensioners will benefit from DA, TA, salary hike for central government employees?—EXPLAINED

In chat with Anil Singhvi, Market Expert Ajay Bagga talks about increasing bond yields, its impact on economy and Bitcoin price crash

Indian social activist Anjali Bharadwaj among 12 anti-corruption champions announced by Biden admin

2.4 magnitude earthquake strikes Himachal Pradesh's Chamba

IIM-K placements: 100 per cent placement for IIM-K students! Average package Rs 22.5 lakh per annum

Stocks To Buy With Anil Singhvi: Ashish Kukreja suggests Mahindra EPC, Greenlam Industries and Natco Pharma

BOOSTER dose for Yes Bank! CDP rates ‘A-' (Leadership Band); achieves Environmental Management System certification for eighth year

Attention NEET 2021 candidates! Check expected exam date

Why home buyers are attracted to Greater Noida; here we explain

PLI scheme: Tapping India's manufacturing capabilities! Big step from Modi government to woo global players

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved