Minute-by-minute: Salgado says BES only paid commercial paper to customers authorized by bop
Ricardo Salgado is being heard in Parliament. For the second time. Started by an initial intervention an hour. Did not apologize, but regretted what happened to customers and workers, vowed to fight for his honor and family said, was not the money. In this intervention, the target was the main Bank of Portugal, in particular Carlos Costa.
19h11 Cecilia Meireles back to PT topic. “I would like to stay with an idea a little better management of what is to want to state: we were strategic partners of PT.”, Replies, Ricardo Salgado
18h58 Cecilia Meireles question Ricardo Salgado for the assets that the Holy Spirit Group had in Eurofin. Salgado responds to the side: “The group has invested in Eurofin because Eurofin gave adequate remuneration and ensured reciprocity with group A Eurofin is an independent company ES Resources was 20% that the group ended up selling Francisco Machado da Cruz was… administrator and decided to stay. The Eurofin had a good operating relationship with the group. It became independent and showed its viability. ”
18h49 In response to the question of Cecilia Meireles on the fact that José Manuel Holy Spirit have said there was “no matter the GES not go through Salt,” the former president of BES says: “Only the financial area was 515 meetings a year had 220 working days per year was occupied completely false that had that absolute power in the bank was a lot of visibility because it was assumed as the largest Portuguese private bank and had plenty of international recognition… . There are people who dismiss responsibilities onto others. Especially in times like this. ”
18h43 – “My relationship with José Manuel Holy Spirit were totally brotherhood I maintain confidence in Dr. José Manuel Holy Spirit…” This is how Salgado answers Cecilia Meireles
18.40 -. “The vast majority of ‘findings’ (forensic audit) are not well,” stresses Ricardo Salgado. “The retail client list was sent and accepted by the Bank of Portugal,” says the former chairman of BES, adding that this list were the caravel funds that invested retail customers.
18h34 Cecilia Meireles asks Salgado whether or not to pay 739 million to customers who were not retail customers, 500 million for the area “private” and the rest to other segments. The former president of BES said, “It was not to give special treatment to these customers, was to act in accordance with the BoP requirements were not institutional clients We are quiet on this finding..” (Conclusion) of the forensic audit “.
18h33 Ricardo Salgado says the money to repay customers of commercial paper is also intended to BES customers Azores, the Best and even ESAF, provided they were retail customers , ie not qualify as institutional.
18h31 “What can I say to Mr. Martins and Mr.. Hawk is that there was money set aside for the repayment of these customers, “said Ricardo Salgado in response to Mrs CDS.
18h28 Ricardo Salgado replied that orders were always given to be shown the prospects of these issues to customers. “The prospectus said there was a risk,” said the former president of BES.
18h27 Cecilia Meireles recalls the story of an immigrant in Brazil, John Martins, who deposited their savings in BES. And another investor money applied in commercial paper of GES. “These people have anything else to say? They thought that his bank had no risk and that risk materialized. “
18h18 ” No way was BESA resources to finance the GES “repeated Salgado, adding that “credit procedures in BES were always spotless.”
Pedro Nuno Santos Salgado questions about the owners of Vaningo company. “The Vaningo was an Angolan company whose credit was guaranteed by the President of Angola. It was the GES. “.” But we did a lot to help the bank “.. Said Ricardo Salgado Deputy not snickered And Salgado told him” Do not laugh I’m sorry, not control myself. “, Said Pedro Nuno Santos Salgado replied:” I understand that it is difficult to have good ideas after this disaster that happened. There is know-if one day who owns the Vaningo. “, Citing the Angolan banking secrecy to not answer the question.
18h14 Pedro Nuno Santos asks if there Salgado Money BESA family go to capital increases for various companies pay credits to BES and the old banker, to Pires and Sobrinho Morais. “For me and Morais Pires not! I do not answer for him, but I know the integrity of man and its expertise, “said Salgado.” It is unacceptable that the BOP is building the process in the press for a conviction already decided. The resources I received were disclosed in the press of dr. Sobrinho. I have not received a penny, “countered.
18h13 Ricardo Salgado regrets that the new bank only has recovered 680 million to 3,300 million euros credit to BES granted to BESA. Socialist MP replied that 680 million will be paid over time. “On top of” critical Salgado, “was a disastrous trading”.
18h07 The deputy PS, Pedro Nuno Santos, asks Salgado on the relationship between BES and BESA Salgado replies. “It was the international area that followed this relationship and was responsible Amilcar Morais Pires. Many of these operations were to finance Portuguese exporters. Everything was protected by an absolute guarantee that it was the President of Angola. Angolans were without compromise and were negotiating with our successors unacceptable conditions. “
18:05 Pedro Nuno Santos asks Ricardo Salgado why not publicly denounced that the Brazilians from Hi knew that PT had investments in debt Rioforte when in July, were renegotiated the terms of the merger of PT and Hi. “I had no time. I had started the collapse. I was completely absorbed in the BES, “explained the former leader of BES.
18h04 ” I asked Zeinal Bava and pass to Henry Grenadier the investment is made for one year “in .. line with the strategic partnership agreed with Brazilian partners “No one was waiting for the collapse which occurred,” lamented Ricardo Salgado
Pedro Nuno Santos asks: “Zeinal Bava knew of PT’s investment in Rioforte ? “Salgado says,” I think so “deputy. Question:” Grenadier knew “Salgado Response: I think so?”. And Brazilian shareholders “knew and then denied. He was in the capital increase accounts.”
17h56 “PT shifted the investment of ESI to Rioforte the suggestion of finance . I do not know by whom. This conversation has been taken with the financial area. This investment was already there, “said Ricardo Salgado. The deputy PS insisted. “I do not treat operations
Ricardo Salgado
Financial. Dealing with the leaders of the PT strategic developments, “said Salgado, refusing to have” matched “that investment, as Morais Pires said in a recent letter to Members of the commission of inquiry.
17h54 “Who is that PT’s investment operation in Rioforte was combined?” Asked Pedro Nuno Santos. Ricardo Salgado returned to tell the story of the strategic partnership between PT and BES, dating back to 2000.
17h53 Pedro Nuno Santos asks Ricardo Salgado do not lose hours to say the same as I said before. “Do not repeat the same answers. We have heard an initial intervention an hour,” said the deputy PS in critical tone.
17h49 Ricardo Salgado says he will explain what happened with PT. When we established the impairment of EUR 700 million in ESFG, investors sought to arbitrage between debt and ESI Rioforte. “Investors in ESI asked to arbitrate their positions in the ESI Rioforte”, said Salgado. “It was the same position that PT. PT did not apply so 900 million handed to the group,” he said.
17h42 Pedro Nuno Santos wants to know why Rioforte bought ESFG to ESI. “The idea was to reconfigure the group that had its consolidation,” said Ricardo Salgado. “There was virtually no movement of capital,” he said. Pedro Nuno Santos recalled that this operation has increased the debt Rioforte, making it owes to ESI.
17.40 “The question was to solve the customer problem. For the confidence of the bank remained” said Ricardo Salgado to say that it complied with “ring fencing” and that the account money “escrow” only served to pay to retail customers.
17h37 “Why did not participate in the forensic audit?” Asked the deputy PS. “I was deeply shocked by the summary judgment that the governor made on August 3, accusing the bank’s management of the largest deviations capital. From there I refused to participate. I am convinced of the goodness of our procedures,” Salgado insisted.
17h34 Pedro Nuno Santos says Ricardo Salgado that “should have spoken with Deloitte, which was available to it” when the former banker began to explain himself to challenge the findings forensic audit concludes that the BES violated the requirements of the Bank of Portugal on the “ring fencing” the bank against the GES.
17h34 Ricardo Salgado said that there was no money account “escrow” for paying customers segment “private”, contrary to the forensic audit. “Unqualified private customers such as the BES 360 segment, were retail customers,” said the former banker. Pedro Nuno Santos reveals that it can not “scrutinize all the forensic audit” in this session.
17h29 “Excuse me stubbornness. I warned three times the Bank of Portugal on systemic risk. The last time was on 31 March. This letter was submitted to the President the Republic and the Prime Minister. What I have described in this letter is what happened. He said always to fulfill the ring fencing. What I did was say to fulfill the ring fencing until the final collapse, “he said Salgado. The former leader of the BES says that only came out account funds “escrow” [account created to repay commercial paper held by retail customers], contrary to the forensic audit
17h26 “No We skirted the ‘ring fencing’. We did everything to repay bank customers “who had commercial paper of ESI, says Ricardo Salgado, insisting that the forensic audit points” potential illegitimate disobedience “.
17h23 Pedro Nuno Santos stops Salgado, who was a long exposure to explain how to fulfill the “ring fencing” and asks, “let’s do this more synthetic form.” The deputy PS makes direct questions and the former president of BES replies that fulfilled. “There was an objective which was to eliminate the exposure of BES ESI, the bank violated, insists Pedro Nuno Santos.” Be patient. We comply exactly with the ‘ring fencing’ and it was because of this that the group collapsed. If not, perhaps, had not collapsed, “countered Salgado
17.20 -. Ricardo Salgado says some of the conclusions of the forensic audit are” unfounded “
<. p> 17h19 – According to the first part of the forensic audit, BES has violated the provisions of the Bank of Portugal to protect the bank’s financial problems of GES for 21 times
17h17 -. Fernando Negrao, who chairs the committee of inquiry calls for less frame and more direct responses to Ricardo Salgado
17h16 – Carlos Abreu Amorim, the majority of the ruling party, will finish its first phase of questions Each parliamentary group is eight minutes in the first round concludes: “the version with built here insists it makes no sense”… Salgado drinking a glass of water however. The lawyer back a smile. “There’s livelihood. My diagnosis is hard but it is what I feel,” Salgado attacked.
17h12 – The forensic audit requested by the Bank of Portugal reports that the BES gave credits to BESA who have then to “offshore”. One is the Savoices. Carlos Abreu Amorim questioned whether it was a Salgado their society. Salgado said he had no “offshore” in its name and that Savoices was closed for more than two years
17h09 -. “I have these elements.” This is how Salgado answers on the effects of group crisis in Angola BES shareholders
17h04 -. Helder Battaglia, president of Escom, had said in his hearing that money received by ES Enterprise once. Salgado said that “there was a specific operation”
17h03 – Abreu Amorim question because, not being a blue bag, not on the group’s organization chart:.. “It was not part’s a failure “.
17.00 – Ricardo Salgado puts forward explanations to deny the idea that the Holy Spirit Enterprise is a blue bag. The former banker highlights the history of the group saying that it was necessary at the beginning of group life, a shared services company. The company insured the “internal control, the sum of all reports of internal controls of all financial institutions in the group.” It also dealt with the shared services of legal and auditing services. A sequential phase, also provided shared services to non-financial area “
16h56 -. Carlos Abreu Amorim question by ES Enterprise, believed to be a blue bag GES.” There is a blue bag, gentlemen, “said Salgado
16h54 -” Things are slow in Angola “There is talk of assets that the GES had in the African country. and the difficulty was to register the property. “He wants us to convince those who can in Angola a sovereign guarantee does not get priority registration?”, shot Abreu Amorim.
16h41 – “No one in the family knew exactly what was going on. If we knew we would not have invested our resources in capital increases [GES Society, in 2011 and 2014] “
16.40 -. Ricardo Salgado insists that Machado da Cruz , which was also heard in the committee of inquiry but behind closed doors, was not fired from GES shortly after we have discovered that there were hidden liabilities in ESI because it was the only one who knew fill the necessary reports in the United States relating to BES unit . in the country “was an extremely unfortunate situation”
16h38 -. Salgado denies having meetings in Lisbon and Cascais, with the “commissaire aux comptes” to establish the strategy of defense on the blind accounts. Former President of BES repeats you’ve heard more than one version of the Axe position of the Cross. But goes on to say that “Dr. Machado da Cruz has served to”.
16h36 – Will sue Dr. Machado da Cruz ?, asks the Social Democrat deputy. Francisco Proenca de Carvalho, Salgado’s lawyer, manages a smile. In turn, Salgado says it’s a difficult question to answer. “I think we do not know what will come to pass Let’s watch the development of the situation by the Luxembourg courts.”
16h31 -. Carlos Abreu Amorim asks if Salgado did not know the blind debt in the Holy Spirit International: “My view is always the same I have no new information to enable me to change:. I did not give instructions to the debt blind”. This is what he said at the first hearing on 9 December. Another thing, says Salgado, is that we knew there was no consolidated accounts in the group. It was when it consolidated the accounts of ESI, under the given year by the Bank of Portugal ETTRIC 2, it was concluded that there were more than billion euros that were not accounted for as debt.
16.25 – Ricardo Salgado admits that it should have begun to reduce the debt of non-financial area earlier in 2007. However, this only began in 2010 with the sale Escom, which never materialized since it was never paid in full. “There was no time,” reiterates Salgado, saying that the liabilities of ESI was being increased from the international financial crisis.
16h22 – Ricardo Salgado has a pen in hand and rotates it while talking. Carlos Abreu Amorim ask for explanations on the ESI.
16h19 – “People can change their minds, but I will not comment on what is real insult,” said Salgado, adding that sent a letter to the President of ISEG in response. The former banker recalled that it was there that he graduated college and stressed that even had a room with BES name
16h18 -. Carlos Abreu Amorim had said in its questions the phrase of John Duke when the president of ISEG, in an interview, said he awarded “a crook of the worst kind” when awarded him a doctorate “honoris causa”.
16h17 – “Regarding the apology, he liked to remember a very important Portuguese poet for our country that is Fernando Pessoa: ‘Ask excuse is worse than not having reason ‘. I am here to defend my right. And I think the best way to protect the interests of customers is to prove that I am right. That reason I hope I saw her get as is judged in court, “replies Salgado.
16h16 – “I am certainly responsible and made mistakes,” the banker continues. “I have no problem in taking them.”
16.15 – “I feel in that situation to be brought before a court in which the decision maker, the judge calls me to say that the sentence is declared but will continue judgment. It seems to me that Dr. Carlos Abreu Amorim is going beyond what is desirable in terms of justice, “said Ricardo Salgado in the first response to Members.
16h14 – “. This is the time to try to reverse the slide of its reputation Assume its specific responsibilities in this debacle.” Carlos Abreu Amorim makes this appeal to Salgado.
16h11 – is the Social Democratic Party, the voice of Carlos Abreu Amorim, who starts the questions. The Social Democrat deputy asks Salgado, and “regret”, apologize to shareholders, investors, customers, employees of BES and GES and Portuguese in general.
16h11 – Almost at the end of an hour, as advertised, finished the opening speech of the man who was CEO of Banco Espírito Santo.
16.10 – “Never, at any time, had intent to harm interests of BES, customers and shareholders,” concluded Salgado.
16.10 – “I still do not understand the actions of the regulator,” concluded Ricardo Salgado the initial intervention.
16h06 – “On 22 December, the Bank of Portugal took the decision that has raised equity of the New Bank in more than 500 million euros”. Salgado refers to the loan mounted by Goldman Sachs and distributed debt by several investors through Oak Finance, which left the BES “bad” for the New Bank. This decision, in December 2014, was taken “to improve the balance of the New Bank, and were harmed” other investors connected to BES, Ricardo Salgado attacks
16h04 -. Salgado announces that finishes his opening speech to answer the question: “where is the money.” And advances: “The money did not disappear There was no embezzlement Just look carefully BES accounts to conclude that there was no misuse of money…” Salgado also ensured that the money was not diverted to the family.
16h03 – “27 days before the resolution, the governor said that, if necessary, public recapitalization line was available.” Based on this idea, Salgado left a question to Members “who forced the resolution?”
16.00 – It was for this hour that was originally marked the start of the hearing in Salt commission of inquiry to BES management. It started about 50 minutes before. In these minutes, the third banker Holy Spirit family has launched harsh criticism of the Bank of Portugal and has even custom attacks in the person of Governor Carlos Costa.
15h59 – The former CEO of Banco Espírito Santo argues that many of the letters sent by the Bank of Portugal to the bank, forcing the provisioning or give determinations, had purposes other than those for which they were announced. According to Salgado, the regulator was “already preparing ground for the remedial action.” On this theme, said the letters were sent but no real purpose. And wanted to make a quotation: “I Father Antonio Vieira said that nowhere as in Portugal spends as much on paper.”
15h56 – Ricardo Salgado cites Carlos Costa. “We must clearly know that there is a space and there is room which has to be given [a financial institution].” Ricardo Salgado says that although the governor have said this phrase, not fulfilled in relation to BES
15h53 -. “The regulator prevented an injection of capital into the Bank.” Another attack of Ricardo Salgado to the Bank of Portugal. Argues that there were funds interested in helping the bank, of which the regulator was aware, but argues that only notes were taken.
15h51 – Salgado believes that the governor “was aware that became necessary to inject additional capital into the Bank” in early June.
15:50 – BES held a ‘buffer’ capital of EUR 2.1 billion above the minimum regulatory recalls Salgado on the situation of the bank in early June 2014. “Therefore, BES was solid.” What made him unstable was the refusal of the Bank of Portugal to accept a new leadership in the bank accused.
15h47 – “There was no opposition from the Bank of Portugal.” The former president of BES back to say, like the first time you spoke to Members that when advanced the name of Amilcar Morais Pires to replace never had the financial sector regulator opposition.
15:45 – “Let us, then, to the facts.” Ricardo Salgado repeats the idea that you are stating facts to criticize the action of the Bank of Portugal. Drink a glass of water, however.
15h44 – Fall of the shares of BES and drain deposits:. “Were the two circumstances which led to the destruction of BES”
15.40 – Salgado makes insinuations about the choice of PwC to the ETTRIC 2, exercise determined by the Bank of Portugal who discovered he had hidden debt in the Holy Spirit International, that it was the top company of the Holy Spirit Group. Ricardo Salgado says after that, two directors of supervision by the Bank of Portugal moved into PwC: Luis Costa Ferreira and Pedro Machado. Some Members outline smiles.
15h36 – The executive BES former president argues that managed, in six months, reduce over 70% of the debt of GES that was in the hands of BES retail customers . Says could not continue this way for the process has been “interrupted”. “It is an objective fact,” launched.
15.35 – Members will hear the Salt statement. In the living room, listening to the keys of the computers of journalists. Some deputies will taking notes on their computers.
15h33 – this sense, the former banker says Carlos Costa is the protagonist of a “manifest lack of impartiality.” Therefore launched a process of “suspicion” the attitude of Carlos Costa. “I look for more than a month the decision of the remaining members of the board of the Bank of Portugal,” said
15h32 -. Salgado argues that it was the target of a “pre-conviction announced word of mouth and direct “the governor when the August 3, 2014, Carlos Costa stressed that there was potentially schemes” fraudulent “committed by the BES management.
15h31 – “Last February, I was confronted by a decision process in which the regulator assumes that I am responsible for the worsening of BES situation,” announces Salgado. “I requested the Bank of Portugal to the administrative process consultation”. He was told that there was nothing to see except the decision
15h29 -. “O ‘ring-fencing’ damaged BES instead of protecting it,” Ricardo Salgado said. The ‘ring-fencing’ was the separation between BES and the non-financial area of GES that the Bank of Portugal wanted to determine and which, according to forensic audit, was not met by the banker management.
15h28 – Salgado gives his version of the money taken out of account intended for retail customers with commercial paper of GES for Montepio and BCP. Were loans that had been granted to BES to pay for these customers and, when they reached maturity, had to be repaid.
15.25 – About the letters to two companies in Venezuela that guarantee the debt ESI in your hands, Salgado said that they were not “subject to conditions.” And the owners “not even” the show that wanted to use, he said. Here’s an attack on the Bank of Portugal, KPMG and administration of Vítor Bento which recorded a provision of 300 million euros to protect these letters
15.25 -. ” With the exception of letters of comfort in that I could identify my contribution, the audit report does not identify the specific act by any administrator of Banco Espírito Santo “he says. There are stages in the names of known audit.
15h21 – The photographers and imaging reporters leave the room. In the remaining hearings have less time to take pictures. This Thursday, could stay in the room about 15 minutes. At the same time, Ricardo Salgado will criticizing the disobedience that its management is accused in the forensic audit.
15h20 -. Ricardo Salgado said that there was no will of the Bank of Portugal to seek the 3rd confirmations of the information received “
15h19 -. The data of the forensic audit “insufficient” Salgado says many of disobedience note that “was not available information” or “information is inconclusive”
15h18 -. Salgado began his defense with attacks on the forensic audit. And throws barbs to the Bank of Portugal said that only had access to the document that criticizes and mentions that crimes may have committed “by newspapers. “It is truly unacceptable,” launched.
15h17 – Instead, Salgado first spoke of the injured by the collapse of the group and the bank. “I deeply regret,” he said. “I will never forget the customers and employees who trust in us,” he added yet
15h16 – Salgado repeats ideas already launched the first hearing:. “I just want to fight for my honor and the . my family I know that the remaining years of life will be passed in this fight “
15h14 -. Ricardo Salgado starts this second hearing to say they created a” quick image and simple “about the fall of BES: that was” solely responsible “with knowledge of all the acts and facts. “I will not have anything to do with it all as so often has been suggested,” contrasts what now has been termed the former owner of it all
15H12 -. Ricardo Salgado will making an initial intervention about one hour.
15h11 – Fernando Negrao begins by asking little noise in the room, as there are many more people than usual.
The Chairman of the Commission recalls that “there is new matter” in this second hearing. But let a warning “:.. We are not here to accuse or not to judge anyone It’s up to the judiciary We have a competence:. Supervisory and legislative is our duty to establish the facts that have occurred and led to the end of BES Group and GES. These facts establish is our obligation. ” Fernando Negrao asks “clear question” Members and enlightening answers to Salgado.
15.10 – “Careful there to the center because of the camera.” The warning comes from an employee of the House that asks numerous image reporters in the room not to put in front of the houses of parliament channel.
15.07 – You hear “flashes” of the cameras.
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