MADRID Feb 17 Spain's market regulator has
fined Santander, the euro zone's largest bank by market
value, a total of 16.9 million euros ($23.1 million) over its
sale of convertible bonds to clients in 2007.
Stock market regulator CNMV said Santander made two serious
infractions for not providing clients enough information about
the instrument, which raised 7 billion euros ($9.6 billion) in
two weeks, and levied two fines as a result.
Santander said on Monday that Spain's High Court has agreed
to hear its appeal against the fine. The bank said the
instrument had the regulator's backing when it was introduced in
The CNMV declined to comment.
The bond was paying a 4.8 percent fixed return until it was
converted into shares of Santander in 2012, when the bank's
share price was hovering near historical lows.
The penalty is not firm until the appeals process is
($1 = 0.7307 euros)
(Reporting by Tracy Rucinski; Editing by Erica Billingham)