Pressure for ‘temporary nationalisation’ of Novo Banco intensifies

With the Bank of Portugal’s efforts to sell Novo Banco dubbed a “fiasco”, pressure is growing for ‘temporary nationalisation’, to tide things over until better offers appear.

This has been the message of PS party leader Carlos César, who slammed interest so far as “humiliating”.

It is also the opinion of banking syndicate workers who say they fear any “rushed sale” now will simply lead to the bank being “dismembered”.

Calls for nationalisation have thus been echoed by not only the PS party, but former PSD finance minister Manuela Ferreira Leite (click here), former Novo Banco president Vítor Bento, former Bloco de Esquerda leader Francisco Leitão and even former BES director José Maria Ricciardi.

Ricciardi went so far as to label US equity firm Lone Star – the ‘forerunner’ in the so-called race to buy the bank – as a vulture fund.

His use of the term elicited numerous comments online from people who said Ricciardi hailed from a family (the Espírito Santos) very well acquainted with vultures.

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