Portuguese former bank CEO under house arrest

Former president of bailed-out Portuguese bank Banco Espirito Santo (BES) has been put under house arrest and can only leave with authorization from the judge, the prosecutor's office said in a statement on Saturday.

Ricardo Salgado was questioned Friday morning by judge Carlos Alexandre following an investigation into the bank's collapse, known as "Espirito Santo Universe".

Salgado is one of the six people accused of embezzlement, fiscal fraud, corruption and money laundering among other crimes and was held defendant on July 20.

BES, which was the country's biggest private bank, was bailed out in August last year after a first-half net loss of 3.58 billion euros (about 3.94 billion US dollars).

Salgado, who faces the most accusations, which he has always said he would contest, recently blamed the Bank of Portugal for the fall of BES for relying on government support.

The bank was split into a "bad" bank, which houses toxic assets and liabilities, and a "good" bank, which houses viable assets like branches, employees and senior debtors. The good bank is now called Novo Banco.
   Source:Xinhua - globaltimes.cn
25-26/7/15
--
-
Related:

• Commission opens in-depth investigation into restructuring of Portuguese bank Banif - State aid (EC - 24/7/15)

• State aid: Commission approves resolution aid for Portuguese Banco Espírito Santo (European Commission)

  • Portugal bankers warn EU to stop ‘playing with fire’

  • Los fondos de la ‘troika’ rescatan al Banco Espírito Santo... 

  • Portugal rettet Großbank mit EU-Milliarden

 ---