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The CNMV investigates whether the losses of 2017 of the Popular had to be counted before

The National Securities Market Commission has formulated several requirements for the entity to analyse its latest results, reflecting losses of 12,218,000,000

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The CNMV investigates whether the losses of 2017 of the Popular had to be counted before

Banco Popular, already in hands of Santander, presented losses of 12,218,000,000 corresponding to first six months of 2017. Yesterday it was learned that National Securities Market Commission (CNMV) is analyzing "to what extent it is reasonable" to impute in full first semester red numbers so bulky or also correspond to previous periods.

As explained by President of CNMV, Sebastián Albella, appeared yesterday before Congress commission investigating financial crisis. In front of deputies explained that CNMV has formulated several requirements to entity to analyse its latest results.

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The issue is relevant because it could assume that Popular would have lost some of those 12,218,000,000 in or exercises and should not be charged against own resources in June 2017, when bank was resolved and its capital was at zero. This was design of sales operation to Santander.

In addition, it involves reviewing management of previous presidents, Ángel Ron, who was until February 20, 2017, and Emilio Racho, who replaced him until bankruptcy. Albella also explained that detailed information and documentation on remuneration of advisers of Popular, "of which it could result sanctioning consequences", was required.

During 2016, last full exercise of Banco Popular as an independent entity, bank recorded worst result of its history. He lost 3.485 billion, 00 euros, after making provisions 5.692 billion. In front of se negative numbers, re are 105,430,000 that won in 2015.

These accounts were made public in February last year, although two months later, in April, company informed CNMV of a reformulation of its results.

Albella pointed out to parliamentarians that precisely this reformulation of accounts was key in collapse of Popular's contribution. "This bank was tapped into a liquidity problem, but that does not mean that it did not have or previous financial health problems." He clarified that he has closely monitored sale of shares in days preceding his fall, without finding "manipulative actions or use of insider information."

Consumer Protection

The current leader of stock market supervisor defended not to have eliminated short positions on actions of Popular because y did not give circumstances that justified it.

On future creation of a new independent consumer protection Authority for financial products, Albella acknowledged her "discomfort". In his view, he "undermines" supervision of body he presides. The "DNA" of CNMV, according to its president, "it is quite clear that of a supervisor of conduct", and believes that its nature "has little to do" with Bank of Spain or Directorate General of Insurance, which "clearly predominates supervision of solvency."

Finally, he said he was very concerned that investors are buying bitcoins because of risks involved.


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