Thursday, August 14, 2014

CMVM prolonged suspension of trading of the shares of BES – Reuters

CMVM prolonged suspension of trading of the shares of BES – Reuters

A team led by Carlos Tavares entity has decided to extend the suspension of titles “to disseminate relevant and reliable information about the issuer.”

This Monday, shares of BES were excluded from the PSI 20, to be worth zero euros, continuing titles overall index, although suspended trading.

BES shares are suspended from trading since the 15:42 of Friday, August 1, when it sank to minimum of 0.12 euros.

The days leading up to the decision of the market regulator were of great volatility for the transactions of the bank founded by family Holy Spirit, having been traded over 671 million shares between Thursday and Friday.

Only in the 42 minutes between 15:00 and the suspension were traded 83 million shares of the bank, according to information provided by Euronext Lusa, a value that is far above the average daily trading volume of 37 million shares.

The high volume and high volatility of trading in shares of BES on Friday has led to CMVM to open an investigation into whether there was leakage information.

This issue seems to have even opened a ‘front line’ between the CMVM and the Bank of Portugal, with the regulator of the markets have already made two statements that clarified that only made the decision to suspend the actions of the BES by 15:42 because only then had “knowledge of imminent developments that came to be known during the end-of-week” concerning the solution to the BES, ensuring that it was unaware at the time that other decisions, “apparently” influenced the prices of securities.

In the Parliament, the Governor of the Bank of Portugal, Carlos Costa, said the CMVM was always informed as to what was being prepared and said the chance to apply a measure of resolution to the bank was only placed on the table after the close of Friday, August 1 market.

On the evening of Sunday, August 3, the Bank of Portugal took the control of BES and announced the separation of the institution in two.

The so-called bad bank (‘bad bank’) stayed with toxic assets and liabilities of the old BES and, although they continue to call BES, not have banking license and is in liquidation. It is also the ‘bad bank’ that are the approximately 30 000 shareholders of BES, you must lose everything or almost everything.

In the ‘good bank’, the New Bank’s assets and liabilities were considered unproblematic former BES, getting this new bank a market capitalization of € 4.9 billion through the banking Resolution Fund

Digital Money with Lusa

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