“It was unthinkable what happened in BES was shocking.” – Economic

"It was unthinkable what happened in BES was shocking." – Economic

Paul Zacarias Gomes

paulo.gomes@economico.pt

Aug 08 2014

President of the Portuguese Association of Banks, Fernando Faria de Oliveira, says he is “shocked” and did not expect what happened to the BES in recent weeks, a situation that caused “enormous damage” to the national banking system.

“I am deeply saddened by what happened in BES and the facts that led to this situation: it was shocking had two terrible consequences:. imaging and costs for the banking system, “said the official in an interview with RTP broadcast this Friday night .

Faria de Oliveira however defended the action of the Governor of the Bank of Portugal, Carlos Costa, in the whole process and the statements of reassurance that made 15 days before the collapse of BES . The governor shall, according to the president of APB, broadcast “I knew at that moment” and assumes that he himself did not expect the administration BES did not obey the instructions of the Bank of Portugal “Nothing could foresee.”

“For too stringent and the background will the inspections can not detect acts that are often hidden and that neither the auditors themselves or teams inspections of institutions can detect. Could happen,” said .

In the last days of his term, Ricardo Salgado approved will comfort letters addressed to institutional investors and non-resident repurchased own bonds that will result in increased losses of the Bank

Asked if Carlos Costa should have removed Ricardo Salgado when he had knowledge of the first indications of irregularities, Faria de Oliveira argues that no one expected what was to happen:. “Dr. Ricardo Salgado deserved the utmost respect and consideration of all. Guess it was unthinkable what happened. (…) I can only say I did not expect at all. “

Although ensure they remain” affective issues “with Ricardo Salgado – who is a friend – assumes that made not to speak with the former CEO of BES : “I did not hear what he has to say. I feel a great sadness, I feel. “

Sale New Bank may have to” wait awhile “

Faria de Oliveira assumes that the model chosen for rescue the BES – the recapitalization of the Bank through New Resolution Fund, funded by the banks – it was a “hatchet” in full recovery phase of profitability of banks, but it was difficult adopt another type of solution.

“Banks can not but feel deeply affected by having to pay for the mistakes of a colleague. It is very hard. It is an ax, happened and we can not complain about our legal basis, “he acknowledged.

While promoting the sale of New Bank should be made as soon as possible after any restructuring, Faria de Oliveira admits this may not happen as fast as desired:. “We will have to wait awhile because of market conditions”

Still, trusts that the expression of interest by private, that has been reported in last days, accelerate the process: “Sell by the end of the year would be excellent”

On the possibility of the shareholders of BES might lose the whole. your investment with the solution adopted, the president of APB argued that situations of clients and depositors and shareholders are “very different”: “Shareholders are risk when buying an action assume a risk”