“I do not agree with the resolution fund solution” adopted to rescue Banco Espírito Santo (BES), for being “irresponsible” and “I have come to the conclusion” that the Portuguese authorities “decided to play roulette with the system Financial Portuguese, “said Fernando Ulrich this morning the Parliamentary Commission of Inquiry into the collapse of the GES and BES. The banker also took the opportunity to deny Vitor Gaspar and criticize harshly the intervention of troika , in particular the European Central Bank (ECB), which considered to have failed in BES file.
It was with several bombastic statements that Fernando Ulrich, president of the Portuguese Investment Bank (BPI), surprised the deputies during his opening speech at the Parliamentary Committee of Inquiry (CPI).
The banker began by reading a document, with projection Slide on the “process leading to the implementation of the measure of resolution to the BES and its consequences in particular as regards developments and options for the GES and the New Bank”.
One of the document focuses focuses on the financial weaknesses of the GES and its contamination were Issuer to public since 2012 and is accentuated over 2013.
Before you start reading document, Ulrich denied statements Vitor Gaspar Reuters where former Finance Minister assured that he had had several contacts with the financial system operators and that such contacts not held any concern about the situation of the GES and BES. The banker noted that it is considered “covered” in the group “of financial operators” and told “that maybe in late May or early June 2013,” went to the former minister and that “one of the issues” that stated “was the concern about the situation of the GES and BES”. And, said: In less than “24 I was contacted by a senior official of the Bank of Portugal [BoP] who asked me to come talk to me to BPI.” In conversation “explained more in detail the concerns that had shared with” with the Minister of Finance. “What happened from there already do not know.”
The banker summarizes that their “concerns” about the GES-BES and the financial system were shared “with the Minister of Finance” and that “he spoke with the governor of bop, and the governor” sent an emissary to BPI.
For Ulrich “no one needed” to its warnings to know that the situation in GES / BES was uncontrolled because there was enough public information so that they could “detect BES problems.” And that it “makes some confusion” to see why the ECB “was so demanding with BES and walk in his arms with Greek banks.” The banker says he does not realize why the ECB “was so demanding” to one of the largest banks in the “country wonder” of troika , that the European banking authority belongs. And confesses not understand why the troika “not detected” the BES problems. “So much work and so many people” and “did not see anything” and the bank “did not need public capital burst.”
Ulrich does not understand decision
About solution found by the government and the bop to prevent the BES to fail, the president of BPI revealed the commission disagrees with the adoption of the resolution fund being a measure “irresponsible” and even admits may have to simply find that the Portuguese authorities ” decided to play roulette with the Portuguese financial system. “
” I can not conceive that responsible entities “, especially the bop and the Government, but also the ECB,” have taken the decision “of the resolution fund, “without having an idea of what it could mean for the other banks”. Then, “decided to take the BES issues and spread them by other banks.” “I am concerned as a shareholder resolution Fund [10%],” Ulrich recognizes that “considers that the risk is unlimited” and that has “to have a limit.”
The President of BPI believes that, in late 2013, the fate of GES / BES “was cast” and “should have acted sooner” to prevent its collapse.
When asked by Mr PCP, Michael James, on the liberality of 14 million allegedly offered to Ricardo Salgado by the client José Guilherme, in 2012, Ulrich said that he had been receiving this “would never enter the BPI.”
For Ulrich, the Fund solution Resolution “was a government decision” because all other avenues to prevent the collapse of the BES required an alternative to public funds sinker by the Executive led by Passos Coelho.
Potential buyers of the New Bank (which resulted from good BES) “will probably not accept” the risks associated with litigation [processes that are run against the New Bank under measure of resolution] what will become a problem for the resolution fund, the seller of institution operated upon. “If the litigation goes wrong, who will pay? I fear that the authorities push for resolution fund and there is no limit to the risk” of the measure to the rest of the sector, alert.
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