Three hearings, the same conclusion: Novo Banco was born crooked committee of inquiry

Novo Banco Committee of Inquiry Members today listen to the third member of the first management team to run the bank born since the end of BES. José Honório used a picture to show what the first administration received from Novo Banco: “We received a patient in the intensive care unit, but without the mechanisms to rehabilitate him”.

The former Novo Banco administrator who was part of the Vítor Bento team informed MPs that this was the team’s conclusion on Saturday 2nd August 2014, one day after the information about the BES decision and after a conversation with the lawyers was what that would mean. The resolution did not take place until a day later and Novo Banco opened its doors on Monday 4th August.

We got a patient in the intensive care unit, but without the mechanisms to rehabilitate him.

José Honório, director of Novo Banco’s first management team

“In our opinion, the bank did not have sufficient capital to operate, face a restructuring process and offset currency losses due to its exposure to BES Angola,” he said. “It was clear to us that we had insufficient capital,” he said. More: “I realized that some of the operations, some of the restructuring raised doubts”. They are complex, he said, adding that his risk is not adequately protected. The bank had to be “restructured” and had neither the capital nor the time to dispose of real estate assets.

Novo Banco started with a € 4.9 billion capital injection, which the first team to lead the bank deemed insufficient. On Tuesday, Vítor Bento, the bank’s first chairman, said the bank had opened doors with capital “too much for the skin”.

Last week, João Moreira Rato, the bank’s former treasurer, told MPs: “Shortly afterwards [da resolução, quando foram injectados 4900 milhões de euros no Novo Banco]As recently as August, we discussed that there might not be enough capital to deal with problems that might still arise. We have shared our concerns with the Banco de Portugal, ”he said in the poll last week.

To characterize the difficulties during his time at Novo Banco, José Honório also said that “during the eight or nine weeks” at BES and Novo Banco he seriously considered expressing my unavailability four times, the last time it was irrevocable ”.

José Honório argued that the team led by Vítor Bento “rightly said that Novo Banco would do very poorly in the process that followed,” but that they were “ahead of their time”. The former administrator was surprised that there had been no political involvement in the state guarantee of the Banco Nacional de Angola over BES Angola’s debts to BES.

Back to top button