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Brussels will consult with Santander if it offers more information on the sale of the Popular

The Chairperson of the Single Resolution board (JUR), Elke König, does not respond to the questions of members and receives a harsh reprimand from the Congress

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Brussels will consult with Santander if it offers more information on the sale of the Popular

The President of single Board of resolution (JUR), Elke König, has denied Congress, on two occasions, Deloitte report which served as basis for selling Popular to Santander. However, independent appellate Panel of JUR decided, 10 days ago, to publish more details on report. Before financial Crisis Research Commission, König said Monday that "is evaluating analysis of data, some of m confidential, to see which ones can be released, but we must consult interested parties, including "Santander who acquired Popular, before publishing m."

"After having carefully weighed all interests that converge in case, JUR estimates that content of evaluation report cannot be unveiled at this time," König asserted in his missive of denial of information to Congress. He insisted that his disclosure "would undermine protection of commercial interests of Banco Popular and its buyer" (Banco Santander), as it contains "very delicate business secrets, whose revelation could interfere with business management".

"Banks are special entities very vulnerable to information and rumors about markets in general, as y influence ir accessibility to capital market, ir ability to refinance and behaviour of deposit holders," Apostille.

Criticism of Members

The highest responsible for first resolution of a bank in Europe wanted to placate many criticisms of members about ir secrecy about Deloitte report saying that "transparency must be proportional" and that "revelation of some data can "To be detrimental to financial stability and to buyer Bank, Santander". For this reason, he rejustified that he should consult with Santander for disclosure of data.

Then König pointed out to members that when y decide if y increase information of Deloitte document, y will be able to check it through ir website that is where y will make it public, as well as in European Parliament. It also recommended that y be pending court decisions of European Union in response to many demands presented. "As we can see now, it is a party for lawyers who resort not only to legal actions of EU and national authorities, but to legality of European framework of resolution."

These phrases, and hermetic attitude of König that did not contribute just news, angered members, who were already very upset with her for his refusal to deliver report. Following replies of directive, as re was no turn of reply, President of Commission, Ana Oramas, took floor and said: "I am grateful that you have come to this House to explain performance of JUR, but this is a Parliament and I think you cannot tell us that if Amplí To information on Deloitte report we must look at a website. Nor is it appropriate for us to live up to law firms and ir demands before courts. You have not responded to any of questions raised so we will send m in writing. It has squandered a great opportunity to reassure 300,000 shareholders of Popular and all citizens and convince m that things have been done well, which is certainly case. "He could have clarified something we didn't know by media: he just told us how he operated with Italian banks and how Deloitte was selected."  The spokespersons of parties showed ir support for Oramas for ir rap to König.

Lack of democracy

The deputy of United we can, Alberto Montero, accused König of having an attitude that gives wings to those who claim that European institutions suffer from democracy because ir maximum responsible, not elected by citizens, do not account to Parliaments. The head of JUR insisted that y account for European Commission and that y will follow what rule EU court.

The Chairperson of single Resolution board stated that Agency will publish at beginning of 2018, probably in February, a third report on resolution of Popular, carried out later, which will determine wher it is necessary to compensate shareholders Affected.

If this report determines that bank's shareholders and creditors--who have reduced ir titles to zero in settled entity--were worse off after resolution than y would have been in event that Popular had entered into competition, JUR I would be obliged to compensate you for difference. However, König said until two times that he "did not expect" that re would be a negative resolution for JUR. However, if it were to compensate shareholders and bondholders of Popular, bankruptcy of this bank will have a public cost.

The head of JUR noted that by end of Christmas, second report will be finished, which assesses wher first report, drafted with urgency because Popular was resolved in one night, has adequate appraisals. Admitted he told Bloomberg that y were analyzing Popular "like or banks." It was an answer not to comment on a question made by journalist. It had No impact on markets. "Days later, Reuters included in or information previous statements with or details that we don't know where y got m from." This information provoked departure of 5 billion euros in three days of Popular, accelerating its bankruptcy.

König rejected accusation of Pedro Saura, spokesman for PSOE, who stated that he had already taken decision to intervene Popular before June 6. "The decision was not made, we had no conversations with prospective buyers." When bank said it was in cause of resolution, FROB commissioned its sale to an investment bank.

With regard to possibility that Santander would be helped if re were lawsuits, König pointed out that "that is to be seen ...", but n stated that entity has assumed all legal risks.


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