The state seizes the “bad bank” and replaces its president

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The state has made a statement about the seizure of the saree, popularly known as the “Bad Bank”. Until now the bank’s rescue fund FROB owned 45.9% of the company, now it has risen to 50.14% after buying 4.24% from other private shareholders. This completes the statement made by the Council of Ministers a few months ago and at the same time is a change in leadership. Former CEO of the FROB Board of Directors Javier Torres has become the new president of Sareb, replacing Javier Garcia del Rio.

The state appealed to the company’s private partners, major banking and insurance entities other than the BBVA, to offer them one euro for every 39,710 euros. Neither FROB nor Sareb provided any information about the shareholders who sold their shares.

The government had previously amended the law to allow the FROB to cross the 50% threshold for bad bank shares, although it initially ruled out reaching 100% of the securities. Thus, the status of “Sarebi” is formed, which was already a reality after last year Eurostat forced the state to take the debt of this company as its guarantor. That was more than $ 35,000 million in public debt.

“Sarebi” was established in 2012 as part of the bank’s rescue process. It is a company that has absorbed the toxic assets of surviving financial entities to clean up their balance sheets. These assets were acquired through the issuance of debt by the Company, which, as it turned out, exceeded their fair value, which added to the problems in the accounts of this company. The purpose for which this company was born and which still has legal life until 2027 was to sell these assets in the market by reselling them.

Sareb’s new shareholding reality has led to a change in the board of directors. Torres takes over the company’s executive presidency, replacing Garcia Del Rio. He agreed to the position a year ago and replaced Jaime Echegoen, who resigned. In addition, the departure of the owned directors, who were private shareholders, has been signed. Thus, Javier Garcia-Caranza Benjuma and Jaime Rodrესguez Andrade left the Board of Directors by Banco Santander, while Jorge Mondégar Lპpez left Caixabank. Enrique Rovira, who held the position of CEO of Banco Badel, resigned a few days ago due to illness at a financial institution. Independent directors Francisco Javier Bartolome and Inaki Goicoetzeta also resigned after a five-year term expired.

Torres was the director of the company on behalf of FROB. He belongs to the body of commercial technicians and state economists and has a professional career in the public sector as well as in the financial sector. From 2017 to 2019, he was the Director of Resolution and Strategy at FROB. Prior to that, he developed his professional career at Banco Santander, where he held various responsibilities in the Risk Division, Treasury, Industrial Group, Wholesale Banking, Vice Presidential Assistant, and affiliates. In addition, he has also worked at ICEX, San Sebastian’s Territorial Directorate of Economics and Commerce, and Professor of Microeconomics at the Faculty of Economics, University of Complutense.

Despite the transfer and the change of presidency, the state intends to keep the “bad bank” a private company. So it appeared in the rule that approved an extension of more than 50% of the participation. “It is likely that FROB could achieve a majority position in the Sari capital without obtaining the status of a state-owned commercial company,” the regulation said. However, the royal decree allows the state to control the salaries of the Sari leadership. This issue has been controversial in the past within the company, which, although it was not public, was the main shareholder in FROB.

Source: El Diario

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