Collapsed BPP management face fines

Page created: Thursday, 14 May 2015 9:10 GMT

Banks  BPP  CMVM

The CMVM Portuguese stock market regulator has handed down around €4.4 million in fines relative to the collapse of Banco Privado Português (BPP) with seven former directors found guilty according to a statement released on Wednesday.

The CMVM handed down a €1 million fine to former president João Rendeiro along with a five-year ban on holding management positions, with Paulo Guichard, Salvador Fezas Vital, Fernando Lopes Lima, Paulo Lopes and Vítor Castanheira also subject to sanction.

The BPP itself also got a €1.5 million fine, suspended for two years, with this decision and that for Vítor Castanheira the only definitive decisions given the rest have already been subject to appeal with the latter paying up €100,000, with a further €35,000 waived in lieu of his decision not to appeal even while still banned from holding management positions for two years.

Should the CMVM prevail in the appeal, Paulo Guichard faces a €700,000 fine and a five year ban, Salvador Fezas Vital gets €500,000 and a ban of a similar length, Paulo Lopes is appealing his €400,000 fine and five year ban while Fernando Lopes Lima looks set for a fine of €200,000.

BPP went under in late 2008 shortly after the nationalisation of Banco Português de Negócios with the then Socialist government on this occasion to oversee a financial sector consortium that provided €450 million in liquidity to shore up BPP over the short term with the directors found guilty of dereliction of duty and negligence among other charges.