Having admitted that the banking system problems in Portugal could be systemic, the President has a bigger problem now as the 3rd (and final) Holdco of the Banco Espirito Santo capital structure fiasco just filed for bankruptcy:
- *ESPIRITO SANTO FINANCIAL GROUP SEEKS PROTECTION FROM CREDITORS
First it was ESI (storm in a teacup), then RioForte (“contained”), and now ESFG (“systemic”), and given the CEO’s recent “detention” for money-laundering, we wonder how long before Banco Espirito Santo is forced to liquidate?
President Anibal Cavaco Silva is the first high-profile
politician to warn of a possible economic impact from the Espirito Santo
crisis, after the family asked for creditor protection for one of its key holding companies on Friday.
…
“We cannot ignore that there will be some impact on the real economy.”
* * *
Which does not leave much room for Portugal’s growth….
via Zero Hedge http://ift.tt/1z8xvAF Tyler Durden