The Securities Market Commission (CMVM) found information from leakage of acts that prepared the resolution of Banco Espírito Santo (BES), applied to 3 August 2014. The use of such inside information because it was not knowledge of the whole market, to give BES shares of sell orders is a potential market of crime.
research for sale massive actions BES before the trading of securities on the stock exchange has been suspended , focused on sales orders from major international investors but also retail. stock trading orders given were investigated for about 80 investors. The CMVM’s annual report reveals that in late 2015, were in “ongoing proceedings of international research involving international investors who had focused intense sales in the last moments of trading.”
Having been found also on the basis of international efforts made, information from leakage of acts intended to prepare the adoption of resolution measures were in steps underway to confirm and determine the mode of obtaining inside information about the impending intervention in BES and the establishment of a bad bank and the scope of possible transmission of this information to investors that can be used to carry out transactions. “
the CMVM said that at the end of the year were ongoing even “international efforts” and that the goal is to complete the process by the end of this year, which can “finish with interests criminal. “
in point of situation on the processes related to the BES and Espírito Santo Financial Group (ESFG), the holding the Holy Spirit family was the largest shareholder of BES, the CMVM discloses that preliminary investigations were made to 35 investors who have sold “very significant”, particularly in the last week of BES exchange trading. Sales of investigated institutional “represent a close percentage of 65% of the total shares” sold on the stock Lisbon and came to represent 85% of the volume.
The semi-annual results of BES, with losses of 3 57 billion, were announced on Wednesday (July 30th 2014) evening, accompanied by an original statement from the Bank of Portugal warned of the existence of serious irregularities in the BES management and the need for recapitalization from the bank. Over the next two days, the value of stocks skidded sharply and the titles were eventually suspended in the middle of Friday afternoon. The first news of the resolution came on Saturday, but the decision was only finalized and communicated on Sunday night.
However, the notification of the resolution made at the general direction of the European Commission’s competition had the date of 30 July, that is, the day that the worst results ever in the Portuguese business history were known. The separation of BES in two institutions, made during a weekend, involved dozens of people from various national and European institutions, as well as lawyers, consultants and auditors.
The research scholarship supervisor also focused with the orders given by 48 private investors, particularly those who avoided losses by selling shares before known the half-year results. In more suspected cases, the market regulator accessed and analyzed the investor communication records with judicial authorization .
Even in the context of investigations into market abuse, focusing the efforts on contacts between BES and professional investors in the context of preparation for a capital increase of the bank.
it was also analyzed the insiders behavior (employees or people with access to information) permanent in Banco Espírito Santo and operations through offshore companies of BES Group clients.
An investigation with a broader temporal context special attention was given to inside information about the financial situation of the Holy Spirit International and its impacts on BES, by via the sale of commercial paper of GES’s holding in the bank’s retail customers.
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