Banif: A “bad” bank with a final “disastrous” dictated by Europe – TSF Online

Banif Former administrator revealed that, six months before the sale to Santander, the Spanish bank proposed buying the national institution in exact terms that would occur in December.

Antonio Varela, who was in Banif between 2013 and 2014 as an administrator appointed by the State (as after the injection of 1.1 billion public euros) considers that in 2012, Banif bank was a “very bad, a very bad bank” with a “completely wrong strategy.” “While the other diminished banks, Banif increased the size to double in previous years,” said the Parliamentary Commission of Inquiry to the resolution of the bank.

“It would be very difficult,” the story ended well, argued , adding, “but it was not necessary to have ended so badly.” The outcome was “disastrous” especially because the Directorate-General for Competition (DGCOM) and the European Central Bank (ECB) were “fully committed to not have any liability for any developments Banif post-2015″. The former Banif administrator, who then moved to the Bank of Portugal, which would come into conflict with Carlos Costa, recalled that “on January 1, entered into force the new Single Engine Resolution, which had the consequence that a resolution would to be dealt with by the ECB and the Single Supervisory Board. ” “Also for DGCOM was evident that a negative that would give the process would be much more difficult to give in 2016 than in 2015,” he said.

The rush of European authorities to solve the Banif problem, which ended in December, a concurrent resolution lightning with the sale to Santander also had more prosaic reasons: “people in the European institutions have the habit of having extended vacation at Christmas and were very involved in that,” he said.

Santander declined in June the same slice of Banif would eventually buy in December

in June 2015 Santander approached Antonio Varela (then administrator of the Bank of Portugal with responsibility for supervision) showing “hypothetical interest” in buying part of Banif. “The good part,” he said, “that would eventually buy months later.”

Resignation of the Bank of Portugal “personal” because “efforts were not bearing fruit”

Varela came out with bang the Bank of Portugal, arguing with a “lack of identification” with the policy conducted by Carlos Costa in front of the regulator. Asked about the reasons for the dismissal, the former administrator with responsibility for prudential supervision of the financial system said it was a “personal” decision. “When we came to the conclusion that what we are giving is not getting enough results, draw conclusions,” he said.

Banif shares? “Never had”. And the savings that there had lost. “Patience.”

Varela assured that never had Banif shares. “I had, instead, preferred shares of a subsidiary Banif, and this is a form of subordinated debt.” And this investment has been reduced to zero, “lost this investment and lost the savings that had there.” “I could have exchanged the bonds for shares and sold, but decided not to because I understood that it was incompatible with a state administrator,” he lamented, adding that “kept the obligations until the end.” The same reasons led to not see free titles when he went to the Bank of Portugal. The savings that there was deposited, which kept “in support of Banif” was also lost because the former managers of the banks are not covered by the Deposit Guarantee Fund. “Look, I lost,” he said with a shrug. “I must have lost a little more than what I got at Banif while I was there.” “Patience,” he lamented, sneering: “. And the worst is that you can not shoot down the IRS”