Another day, another executive forced to refute rumors of his organization's imminent bankruptcy, fueling further speculation that observations of fire may soon follow those of smoke. The head of Portugese Banco Comercial Portugues, the largest private bank in Portugal, Carlos Santos Ferreira, sent an email to his employees saying that text messages by "unscrupulous authors" "claiming the bank is on the verge of bankruptcy, are merely attempting to "undermine the confidence" of the bank and are groundless, and have been reported to the Portguese version of the SEC. Amusingly, Ferreira noted that ordinarily he does not comment on "rumors and hearsay, because this will give them credibility." As Portguese banks have been shut out of the interbank funding market for months, and rely exclusively on the ECB, we can see why the CEO of the BCP may be a little concerned about people being abnormally truthy these days.
Full email from Jornal de Negocios, translated by Google:
Rumors about the creditworthiness of the Millennium bcp
SMS messages broadcast by circulating for some time, and this week with increasing insistence, a set of rumors which undermine the soundness of Millennium bcp as it happened, as we remember in the last quarter of 2008.
As is common sense, rumors and hearsay does not comment, because this will give them credibility, notwithstanding this situation has already been reported to the CMVM.
We know that by definition come from unscrupulous authors, do not hesitate to undermine confidence in the Portuguese financial system and the Millennium bcp, without any reason or foundation.
Only by maintaining composure and professionalism, which the Bank in general and commercial networks in particular, has shown, allow responding to these attacks.