The administration of the Portuguese Private Bank (BPP) and the Bank of Portugal (bop) have not yet closed by an agreement on the likely recovery plan for the institution led by John tenant, which may be known throughout today.
By Business found that the continuation of contacts between the BPP and the supervisory body yesterday led the bank to suspend the purchase of applications for customers, which have soared in recent days.
The increase in the number of customers trying to raise their applications tend, as financial sources, to enhance the financial difficulties of the institution, making it even more urgent the need for a solution. Yesterday, the end of the day, some sources even admitted that the pressure would already have achieved an understanding in principle on the appointment of two directors to the BPP by the Bank of Portugal.
By Business found that, the team of administrators of the Private Bank have already expressed willingness to waive the seats, leaving the supervisor throughout the scope to choose the managers who want to maintain the institution. But it is expected that some elements of the current board of directors are in the bank, to help implement the plan of reorganization.
However, other sources, the worse the situation of the BPP does not give assurances that the supervisory authority led by Victor Constantius allows a reorganization plan for the bank. Fearing the failure of negotiations, some shareholders have played yesterday even some movement in order to safeguard their interests, particularly in relation to the actions of the management of the Private Bank.
By Business found that, before committing yourself to a rehabilitation program, the bop wants to make sure that, in fact, the seat of John tenant can afford to development. To that extent, the teams will be the supervisor to examine carefully the assets of the Private Bank, as well as portfolios of the companies vehicles designed to make applications in listed companies. Another concern of the supervisor is related to the finance contracts entered into by those companies and that helped support share of the investments.
For the team led by John tenant, the viability of the BPP must go through the injection of funds in the institution. The latest calculations presented by the banker, before the wave of ransoms in recent days, pointed to needs minimum of 500 million.
In the negotiations with the bop, the bank has yet suggested that the applications of customers in fixed-income products are dissolved, leaving investors with securities in which the funds are applied in proportion to their exposure to their portfolios. Thus, these customers ensure at least the reimbursement of capital invested, at the time of maturity of the securities.
Already for vehicles that have investments in listed companies, such as BCP, the Mota-Engil and Brisa, the solution may involve the assumption of their losses - which exceed the 300 million euros only those companies - by customers and also the bank.
Some of the measures that will be adopted in the plan of reorganization of the BPP will be discussed tomorrow at the meeting of the Consultative Council, a body in which sit some of the major shareholders - as Francisco Pinto Balsemão, Stefano Saviotti and John Vaz Guedes - as well as independent members. It is also convene a general meeting of shareholders that the chairman of the meeting, Jose Miguel instance, you want to schedule for the next day on December 19.
By Business found that the continuation of contacts between the BPP and the supervisory body yesterday led the bank to suspend the purchase of applications for customers, which have soared in recent days.
The increase in the number of customers trying to raise their applications tend, as financial sources, to enhance the financial difficulties of the institution, making it even more urgent the need for a solution. Yesterday, the end of the day, some sources even admitted that the pressure would already have achieved an understanding in principle on the appointment of two directors to the BPP by the Bank of Portugal.
By Business found that, the team of administrators of the Private Bank have already expressed willingness to waive the seats, leaving the supervisor throughout the scope to choose the managers who want to maintain the institution. But it is expected that some elements of the current board of directors are in the bank, to help implement the plan of reorganization.
However, other sources, the worse the situation of the BPP does not give assurances that the supervisory authority led by Victor Constantius allows a reorganization plan for the bank. Fearing the failure of negotiations, some shareholders have played yesterday even some movement in order to safeguard their interests, particularly in relation to the actions of the management of the Private Bank.
By Business found that, before committing yourself to a rehabilitation program, the bop wants to make sure that, in fact, the seat of John tenant can afford to development. To that extent, the teams will be the supervisor to examine carefully the assets of the Private Bank, as well as portfolios of the companies vehicles designed to make applications in listed companies. Another concern of the supervisor is related to the finance contracts entered into by those companies and that helped support share of the investments.
For the team led by John tenant, the viability of the BPP must go through the injection of funds in the institution. The latest calculations presented by the banker, before the wave of ransoms in recent days, pointed to needs minimum of 500 million.
In the negotiations with the bop, the bank has yet suggested that the applications of customers in fixed-income products are dissolved, leaving investors with securities in which the funds are applied in proportion to their exposure to their portfolios. Thus, these customers ensure at least the reimbursement of capital invested, at the time of maturity of the securities.
Already for vehicles that have investments in listed companies, such as BCP, the Mota-Engil and Brisa, the solution may involve the assumption of their losses - which exceed the 300 million euros only those companies - by customers and also the bank.
Some of the measures that will be adopted in the plan of reorganization of the BPP will be discussed tomorrow at the meeting of the Consultative Council, a body in which sit some of the major shareholders - as Francisco Pinto Balsemão, Stefano Saviotti and John Vaz Guedes - as well as independent members. It is also convene a general meeting of shareholders that the chairman of the meeting, Jose Miguel instance, you want to schedule for the next day on December 19.
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