The CJEU concludes that the entity’s resolution was done to preserve economic stability and estimates that “there were no other measures” for its viability
The Court of Justice of the European Union (CJEU) on Wednesday confirmed the liquidation of Banco Popular and its sale for one euro to Santander in 2016. The European justice system has ruled that the closure of the entity was necessary to preserve the economic stability of the euro area, as “there were no other measures that could prevent its non-viability within a reasonable time” and that the sale was “necessary, in the public interest”. The judgment also dismisses in its entirety the pleas of the shareholders, who demanded the return of the lost money or compensation.
The European justice therefore considers that the resolution of the banking entity “does not constitute an excessive and intolerable intervention that affects the essence of the claimants’ right to property, but should be regarded as a justified and proportionate restriction on their right to property”
The decision, which those affected can appeal within two months, is in line with the last five Supreme Court rulings in this case, one of the most complex analyzed by the CJEU. The advice becomes more important, as Banco Popular was the first entity to which the European Banking Resolution Directive was applied. This rule was designed in 2012 to end entity rescue.
The court already ruled in the same sentence at the beginning of May and shielded Santander against the claims of the shareholders of Popular. It then estimated that once the popular titles lost value – as a result of the resolution and cancellation of the shares – the holders lost their status as shareholders, for which they cannot exercise the right of liability for the company that succeeds them, in this Santander couch case.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
