Downfall of a dynasty

Downfall of a dynasty

The last days of Ricardo Salgado and Banco Espírito Santo

Middle East: Special focus

Middle East: Special focus

Exploring the challenges and opportunities

Downfall of a dynasty: The last days of Ricardo Salgado and Banco Espírito Santo

Downfall of a dynasty: The last days of Ricardo Salgado and Banco Espírito Santo

October 2014

Bankers in Lisbon say the demise of BES is a watershed moment for the country: the turning point when old Portugal became new Europe. Ricardo Salgado tried every trick he knew to save his empire, but found that the Portuguese establishment could not – or would not – save him. How did Salgado’s efforts to shore up Espírito Santo through the commercial paper market hasten, rather than avert, his downfall?


  • Stress tests and TLAC will transform bank funding markets

    Bankers are looking past Sunday's publication of the stress-test results and the TLAC requirements that will follow to a substantial change in how banks fund in the capital markets and maybe even new forms of senior debt.


  • Malaysia mega-merger seeks central-bank approval

    Malaysia gears up for consolidation in its financial sector as the three-way deal moves ahead.


  • Inside investment: Fed not alone in its dottiness

    Since the US Federal Reserve met in September the data has been tortured and every word pored over. Why are we in awe of the crystal ball gazing of supposed experts?


  • Against the tide: Draghi’s dilemma

    The ECB president is striving to stave off deflation in the eurozone yet Germany will not countenance full quantitative easing. Something must give.


  • Goldman mounts LIA defence

    LIA ‘not financially illiterate’; relationship was ‘arm’s length’.


  • Russia: Banks will shrug off sanctions

    Sector profitability holding up; central bank adds dollars to liquidity provision.


  • Draghi prays for a miracle but capital weightings leave his ABS purchase programme fatally hobbled

    ABS purchases to include Greece and Cyprus as ECB reveals latest plan for balance-sheet expansion.


  • India: Waiting game continues for foreign investment banks

    Even in a bullish scenario where a Rajan-Modi dream team unleashes reforms – from PSL to the bond market – in an economic super-cycle that sees public lenders recapitalized, foreign investment banks could still be chasing rainbows in India. It is an over-banked market, with dozens of fee-hungry institutions jockeying for business.


  • Unchain Indian finance

    India needs a litany of reforms to unshackle its stalled capitalist project. Modi’s government should take inspiration from the paradox of Singapore’s activist state and strong private sector.


  • AT1 market braced for year-end surge as AQR results loom

    A November rush to market is anticipated, but there are signs of a flight to quality by investors.


  • Macaskill on markets: Sideways – Penalty augury

    Banking industry analysts are not to be deterred in their quest to quantify the unquantifiable. The new philosopher’s stone for the modern day alchemists of analysis is finding a way to estimate the size and impact of future fines for misconduct by banks. This may not be quite as challenging as transmuting base metal into gold, but it presents difficulties nonetheless.


  • Iran: Tehran turning point

    Iran and the west don’t have to be friends, but there will be big benefits from a rapprochement.


  • Iran's pivotal moment

    The security crisis brought on by the rise of Islamic State could turn Iran from pariah to much-needed partner to the west. Financial sanctions have hit both Iran’s economy and its banks hard. Inflation is rampant, NPLs are soaring, while banks lack capital. Corporates can’t get the funding they need. Local bank chiefs are itching to open their doors once again to foreign counterparties. If sanctions are lifted, what will the world’s bankers find in Tehran and beyond?


More Banking stories



More polls and awards



Final days of Ricardo Salgado and Banco Espírito Santo

Euromoney Pulse Survey: Renminbi’s internationalization continues apace
When BES collapsed earlier this year, markets briefly feared a return of the crisis to Portugal and to Europe. Even after the bank's bailout, investigators still pore over bank documents, transfers and deals, trying to make sense of Salgado’s last days battling to keep his empire afloat. The backstory is of an extraordinary decades-long rivalry between the country's two pre-eminent business families.