Credit Suisse had presented a solution for a bank in Brazil that had been ordered to close years ago. A court in the South-American country has now stopped the proposed deal from being put into practice.
The story of the demise of Banco Santos is already in its second decade. The central bank of Brazil in 2004 closed the institute because of financial problems and business irregularities.
One year later, a court ordered its liquidation.
Strong Presence
But this hasn't happened since – despite the offer to solve the problem from Credit Suisse (CS), which has a strong presence in South America.
The Swiss bank offered to manage the remaining assets of Banco Santos, according to «Valor International», a platform for banking industry news. In exchange, creditors would have had to forego 30 percent of the value of their deposits, while Edemar Cid Ferreira, the former owner of Banco Santos, would have retained the rights to his villa (see video below), which is part of the liquidation assets.
Inadmissible Profit
Creditors had accepted the deal worth some 5.3 billion real (1.6 billion francs), but it isn't to be.
A court in Brazil stopped the transaction because Ferreira would have drawn an inadmissible profit from it. The saga continues.
