Vanishing takes deposits Bank to suspend operations Madrid – Express

Six days days to have busted the scandal, the Bank of Madrid on Monday stopped operations after administrators appointed by the Bank of Spain have requested protection from creditors fruit Trail and deposits ” sharp deterioration “of the financial situation of the bank.

The parent of the bank, Private Banking d’Andorra (BPA), had been accused last week of money laundering by the Department US Treasury, while the chief executive of both institutions, Joan Pau Miquel Prats, was held in Andorra. According to US officials, BPA has processed hundreds of millions of dollars in transactions probably linked to Russian groups, Chinese and Venezuelan.

trail in deposits
Since the arrest of the president and money laundering charges, customers of the Bank of Madrid intensified the withdrawal of funds and deposits of the bank.

The massive customer surveys “that place in recent days have affected the ability to meet the timely fulfillment of obligations, “said the bank in a statement.

This reality led the new administrators supender operations “as the only way to ensure equal treatment to all depositors and other creditors of the bank”.

The Bank of Spain recalled in a statement that customer deposits of Banco de Madrid are guaranteed by the Guarantee Fund up to 100 thousand euros, per customer per account. This guarantee “will be effective as soon as it complies with the appropriate procedure”, explains the Bank of Spain.

fund manager
The activity of the Bank Madrid was not focused on retail banking but in the management of investment funds, with assets exceeding EUR 5 billion. In late September 2014, the institution had deposits of 674 million euros.

In the funds, the bank is one of the great Spanish operators, with 78 000 customers. The money invested in mutual funds is not covered by the Guarantee Fund, but the funds are independent of bank assets and account for their performance.

The BPA bought Banco de Madrid in 2011 the KutxaBank by EUR 100 million, including the purchase of buildings occupied by Parliament.