The author of the secret report on the actions of the Banco de Portugal up to the BES resolution, João Costa Pinto, believes that “a more timely, more vigorous supervisory action could have avoided or minimized the problems” that led to the BES resolution in 2014 and gives explanations to former Governor Carlos Costa on why the report has not been discussed internally for “years”, despite being asked by the Governor himself. Costa Pinto is in Parliament answering questions from Members of the Committee of Inquiry into the losses registered by Novo Banco and allocated to the resolution fund.
Defending that “the regulator did not act in a timely manner with the energy that it should have acted”, the report’s author said he did not understand why the 2015 report was not dealt with internally. Despite the request made at the time by the Governor of the Banco de Portugal, Carlos Costa, who was to be heard by the MPs on March 16.
“As far as I know [o relatório] It will not have been the subject of internal discussion for years. I honestly cannot find any explanation for the fate that the report was given, ”he replied to the PS MP, who wanted to know why the ex-governor kept the critical report“ in the vault ”.
Despite the criticism of the regulator and the realization that the Banco de Portugal (BdP) could have gone further, Costa Pinto says that given the dimension of BES, “an intervention – which should have taken place – is more forceful and problems must be avoided that had to be carried out had to have a political component “in order to ensure the stability of the financial system.
Costa Pinto also revealed that an internal notice from the Supervision Department “with the exception of one error in 2011” drew attention to the difficulties of following the Espírito Santo Group (GES) “due to the complexity of the group structure”. “This note drew attention to the very negative aspects of this fact”. The independent committee that produced the report “never found any indication that, despite the importance of the matter, the note even went to the BdP’s board of directors. Apparently, there were no consequences, “he said, adding that the note” would have been delivered by the supervisory director to the lieutenant governor who was overseeing supervision at the time and would have had no consequences. “Pedro Duarte Neves was and will be the lieutenant governor of the time Heard on Friday by the commission of inquiry.