It isn't getting any better for Banco Espirito Santo. With former owners arrested and doubts remaining about the ability of the bank's parent company to support Espirito's debts, shares have taken something of a buffeting in the last month.
Today it all got worse as the market's reacted with fury to news that Espirito Santo had made a £3.6bn loss during the first six months of the year. At pixel time, the markets' displeasure could be quantified by a 37.2 per cent drop in the bank's share price.
Earlier this month 70-year-old ex-owner Ricardo Salgado, who ran the bank for 23 years, was arrested on charges of money laundering and tax evasion after accounting irregularities surfaced at Espirito's parent company. Mr. Salgado had voluntarily acted as a witness in the investigation before he was arrested.
The bank was family-run until the irregularities surfaced, but as confidence in the bank plummeted three family members were replaced. The replacements are expected to be Victor Bento (chief executive), Joao Moriera Rato (chief financial officer) and Jose Honorio (deputy chief executive).