Special Report: The billion-dollar fall of the house of Espirito Santo

Comments (4)
njglea wrote:

The family had it all and it wasn’t enough – twice. This is a perfect picture of how the top 1% global financial elite get it all, illegally, and squander it and average people around the world who actually pay taxes bail them out thanks to the governments the wealthiest own. It is time for a new model of success in the world where social good means more than predatory profit. People like this will destroy the world with their greed.

Aug 29, 2014 11:06am EDT  --  Report as abuse
dbrown101 wrote:

Interesting article but I note that the real cause of the failure isn’t investigated. ESI obviously borrowed huge amounts and couldn’t repay. While the juggling of the debt, detailed in theis article, is very interesting it doesn’t address how ESI lost the money it had borrowed and invested. I say lost because logically, even if invested in illiquid assets, they could have refinanced if the underlying assets supported the debt.

Aug 29, 2014 2:27pm EDT  --  Report as abuse
bckrd1 wrote:

Around the time he signed the letters, Salgado sought public funds to save the family empire, arguing that it was important for Portugal.

“This is not just my problem, it’s a national problem,” he told officials at Portugal’s central bank, according to people at a meeting they held.”

Is planning on sharing the profits with the public or just he losses?

Aug 29, 2014 2:59pm EDT  --  Report as abuse
Gonk wrote:

You wrote:
“2011 (…) the Espirito Santo clan, who at that time owned a majority stake in the lender.”

The family actually owned 5% of the bank. Maybe even less depending on Rioforte’s financial/non financial assets split.

Family owned:
(88.4%ESC x 57.2%ESI x 49.3%ESFG x 20.1%BES = 5.01%)

Please correct the article. 

Aug 30, 2014 8:20pm EDT  --  Report as abuse
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