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Banco Espirito Santo CEO, Who Quit Last Month, Detained In Money Laundering Probe

Tyler Durden's picture




 

Curious why Portugal's second largest bank is in dire straits on the verge of default and as we reported yesterday, is threatening to impact - adversely - Portugal economy should the bankruptcy chain that has already claimed two of its HoldCos continue further? Then perhaps ask the following man: Richard Salgado, who until last month was CEO of Banco Espirito Santo and as of moments ago has been detained in a money laundering investigation.

The WSJ reports that the investigation, called "Monte Branco" was launched by the country's prosecutor's office in 2011 and looked into the financial network between Swiss wealth managers and Portuguese customers. It is odd that the prosecution only led to a "detention" days after the bank imploded terminally, and is now on artificial life support courtesy of liquidity injections by Baupost, DE Shaw and Goldman.

"The prosecutor's office has been conducting various investigations under 'Monte Branco,' which resulted in the detention of Ricardo Salgado Thursday," the office said.

 

Mr. Salgado left Banco Espírito Santo earlier this month amid troubles at its holding company, Luxembourg-based Espírito Santo International SA, which was found to be in serious financial condition after an audit ordered by the country's central bank in May. The audit also found irregularities at its accounts. Espírito Santo International filed for creditor protection last week. Its main unit, Rioforte Investments SA, filed for protection this week.

 

Mr. Salgado, a member of the family Espírito Santo that controlled Espírito Santo International, sat on the board of directors of the Luxembourg company until March.

 

The prosecutor's office disclosed Friday that it has opened investigations around Espírito Santo International and its entities. A spokeswoman for the prosecutor's office told The Wall Street Journal then that it has been following the case closely and couldn't comment further under terms of the law.

We eagerly look forward to finding out if the 0.01% in Portugal is just as exempt from being subject to the law, and rules and regulations as their peers in the United States and in all other insolvent, crony capitalist nations.

 

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Thu, 07/24/2014 - 09:00 | 4997417 yogibear
yogibear's picture

He fell out of favor.

The best way to rob a bank is to own one.

Just take all the reserves out by off-shoring them and then get a bailout.

Thu, 07/24/2014 - 09:01 | 4997427 So Close
So Close's picture

Soon to fall out a window?

Thu, 07/24/2014 - 09:05 | 4997443 negative rates
negative rates's picture

You would reason, yes to no jail time. He was covered by goldman so they will provide the legal team and all will be fine.

Thu, 07/24/2014 - 09:09 | 4997457 pods
pods's picture

He should have laundered CIA drug money.  Then you only pay a token fine and go about your day.

pods

Thu, 07/24/2014 - 09:28 | 4997523 cifo
cifo's picture

Next time they should hire an ex-GS-er as CEO.

Thu, 07/24/2014 - 09:35 | 4997552 Save_America1st
Save_America1st's picture

nail guns work great on banksters...they should give him one to try out.  I'm sure he's feeling "suicidal" now that he's been caught.

nail guns:  the new 21st century guillotine? ;-)

Thu, 07/24/2014 - 09:31 | 4997536 SamAdams
SamAdams's picture

Keep that guy locked up forever, without trial.  This is still cheaper than processing and busing a non-taxpaying alien to OHIO....

Thu, 07/24/2014 - 10:06 | 4997754 Perfecthedge
Perfecthedge's picture

If I where him I would delay the construction of that garden shed and avoid kite surfing at all cost.

According to the news (running loud with this here in Portugal) there are very wealthy clients that, supposedly, would have lost their complete fortune, thanks to the "100%-secure" investment ideas of the ES family, backed up by the European friends abroad.

He lives in Cascais (a small town up the Lisbon coast line, where only the Superrich live, the place that has harbored most of exiled Royals in Europe like King Juan Carlos and many others) and in the past months had hired a personal protection team of 4 Israeli body guards with military background.

The man knows that you don't mess with other members of the Mafia!

Thu, 07/24/2014 - 09:18 | 4997488 yogibear
yogibear's picture

The Federal Reserve and ECB knows there is massive fraud. Their just covering it up with printing.

If your a banker you should be laundering reserves and offshoring money as well. The central banks will keep it a secret. LoL, silence among theives, just like the mobsters.

Thu, 07/24/2014 - 09:00 | 4997421 ShorTed
ShorTed's picture

It's a start.

Thu, 07/24/2014 - 09:10 | 4997440 Dubaibanker
Dubaibanker's picture

Swiss operations of Espirito Santo were sold yesterday to CBH bank: http://origin.swissinfo.ch/eng/debt-woes-prompt-espirito-santo-family-to-sell-swiss-bank-assets/40518116

Panama Govt took control of the bank in Panama yesterdayhttp://www.reuters.com/article/2014/07/23/panama-banking-idUSL2N0PU04X20140723

 Under severe stress for months, the business empire that generations of Espírito Santos built over almost 150 years is now visibly crumbling. Pressing financial difficulties on Friday forced Espírito Santo International, the group’s parent company, to apply for court protection in an attempt to impose order on what it acknowledges will be inevitable asset disposals.

 Businesses that could come up for sale in Africa, Europe, Latin America and the US range from a vast cattle ranch in Paraguay to a Portuguese insurer. They include luxury hotels, private hospitals, Brazilian orange groves, real estate developers, renewable energy companies and an interest in more than 15 banks from Switzerland to Cape Verde.

Now the Chiarman for 22 years has been arrested for money laundering.....Interesting development in a country of 10m people where he used to have 20% market share in all of banking.

Thu, 07/24/2014 - 09:12 | 4997467 yogibear
yogibear's picture

The only bankers now that are  fools are the ones not cooking the books and pulling out banks reserves.

Take that 10% reserve down to 3% or less and lie. Ponzi scheme to the max!

 

Thu, 07/24/2014 - 09:11 | 4997468 Racer
Racer's picture

A bankster arrested????????????

WTF?!

Thu, 07/24/2014 - 10:23 | 4997890 Perfecthedge
Perfecthedge's picture

Portugal started this 40 years ago but didn't finish the job:

The Revolutionary forces arrested Bankers and threw them in jail for "crimes against the Portuguese civil society". This was in 1974.  They got help from Banking buddies abroad (even from Rockefeller) and fleed the country, starting the Empire from new in London, Madrid and Switzerland.  Ironically this would be the second time that he gets arrested on Portuguese soil:

http://ntpinto.files.wordpress.com/2014/04/capa-o-ataque-aos-milionc3a1rios.jpg

Still has many rich buddies and probably has lots of dirt and secret accounts from people that would hate to see this guy speaking:

He was honored in the category Lifetime achievement in Financial Markets in Investor Relations and Governance Awards in 2012, an initiative of the consultant Deloitte that distinguishes best practices in the business sector.

Deloitte are a bunch of assholes (so are KPMG and E&Y)!  Is there a category in money-laundering?

 

 

 

Thu, 07/24/2014 - 09:16 | 4997480 WTFUD
WTFUD's picture

That's the Spirit!

Thu, 07/24/2014 - 09:27 | 4997517 F.A. Hayek
F.A. Hayek's picture

I hope he doesn't have a nail gun in his garage, he might get himself suicided.

Thu, 07/24/2014 - 09:29 | 4997522 overmedicatedun...
overmedicatedundersexed's picture

why let the bank and him go under?? justice? , no not a chance rule of law?, not even close. much like corzine's assassination of mf global, the sharks are eating each other, this bank was easy pick'n, and the ceo did not bribe the right hands...a great topic for a good expose book.

Thu, 07/24/2014 - 09:31 | 4997538 Seasmoke
Seasmoke's picture

So not a member of the Tribe ???

Thu, 07/24/2014 - 09:54 | 4997665 The Fifth Empire
The Fifth Empire's picture

Tribe been around here for centuries, that's how the "age of exploration" was built

As to the individual in question, you always have someone who hands out the "bread and circus" while nourishing himself

Thu, 07/24/2014 - 10:03 | 4997730 firstdivision
firstdivision's picture

Buy (on margin) their bonds, and naked short their CDS's.  No bank is allowed to default, Draghi will bail them out.

Thu, 07/24/2014 - 10:28 | 4997897 Tall Tom
Tall Tom's picture

 ...the investigation, called "Monte Branco" was launched by the country's prosecutor's office in 2011...

 

So they want to investigate me for money laundering?

 

Fuck them. I make the rules. I will just implode my Bank. I will trash their entire economy.

 

Then they will be too busy picking up the pieces of a trashed economy and having to deal with the food riots by the unwashed masses as I am above any of their stinking laws.

 

Revenge is a dish best served cold. And that is what that was.

 

It took that prosecutor just a little too long, didn't it?

Thu, 07/24/2014 - 10:27 | 4997927 Perfecthedge
Perfecthedge's picture

According to Portuguese news (following this right now) he was part of a network that operated in Europe and helped over 10.000 wealthy clients to hide their money or to avoid taxes, the list includes people from all over Europe and also Africa. 

Setup was in "partnership" with UBS in Switzerland and some "shadow" investment funds.

Watch this one unfold...this could uncover some dirt in Switzerland too (UBS).  I expect nail guns to go out of stock...(or better said: there are not enough nail guns to even clean up this mess, there must be some heavy hitters shitting their pants and hoping the Holy Spirit helps them!)

 

Thu, 07/24/2014 - 10:56 | 4998157 Otto Zitte
Otto Zitte's picture

Squeal like little Timmay boy!

Thu, 07/24/2014 - 11:18 | 4998325 NoWayJose
NoWayJose's picture

Money laundering would not destroy the bank - in exchange for doing the laundry the banks usually take a cut - making it a source of profit.  Just look at the Vatican Bank, where profits collapsed when they stopped laundering money.  Thus the 'act' of laundering is 'good' for banks, whereas getting caught can be bad - especially if your country is selling naval ships to Russia.

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