Global stock markets hit by Portuguese bank concerns

Stock markets in Europe and the US fell in July 2014 over concerns about the health of one of Portugal's biggest banks.

Shares in Banco Espirito Santo (BES) were suspended after falling 17% following concerns about accounting irregularities at its parent group.

National and international media sources noted that BES accelerated the appointment of new executives, originally due to start at the end of July 2014.

The former boss of the BES was arrested in Lisbon on the 24 July 2014. Ricardo Salgado, who ran the bank for 23 years, was arrested in connection with a money laundering and tax evasion investigation.

BES announced a record loss of €3.57bn for the first six months of 2014 on the 30 July 2014. This amounted to over 2% of Portugal's GDP and was the highest loss a company had ever registered in Portugal.

• Primary Source

The Guardian, 10.07.14: Portuguese bank fears hit stock markets http://www.theguardian.com/world/2014/jul/10/portuguese-bank-fears-hit-stock-markets

The New York Times, 10.07.14: Suspension of a Portuguese Bank’s Shares Shakes the Markets http://www.nytimes.com/2014/07/11/business/daily-stock-market-activity.html

Il Sole 24 Ore, 11.07.14: Ailing bank dampens euphoria on markets (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE146663-Ailing-bank-dampens-euphoria-on-markets

Banco de Portugal: Press Release, 11.07.14: On the financial position of Banco Espírito Santo, S.A. https://www.bportugal.pt/en-US/OBancoeoEurosistema/ComunicadoseNotasdeInformacao/Pages/combp20140711.aspx

BBC News, 11.07.14: Banco Espirito Santo: Portugal seeks to calm fears over bank http://www.bbc.co.uk/news/business-28260172

BBC News, 14.07.14: Espirito Santo fast-tracks management changes http://www.bbc.co.uk/news/business-28286262

Blog: Open Europe, 11.07.14: What sparked yesterday's renewed concerns around the eurozone? http://openeuropeblog.blogspot.co.uk/2014/07/what-sparked-yesterdays-renewed.html

Diário Económico, 18.07.14: Don't underestimate Portugal's bank turbulence (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE147080-Don-t-underestimate-Portugal-s-bank-turbulence

BBC News, 24.07.14: Portugal's Banco Espirito ex-boss arrested http://www.bbc.co.uk/news/business-28460460

Público, 25.07.14: ‘Suspect’ (via VOXeurop) http://www.voxeurop.eu/en/content/news-brief/4798872-suspect

BBC News, 31.07.14: Portugal's Banco Espirito Santo in 3.6bn euros loss http://www.bbc.co.uk/news/business-28578784

Jornal de Negócios, 01.08.14: Record BES loss sends tremors through Portugal (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE147898-Record-BES-loss-sends-tremors-through-Portugal

The Portugal News, 31.07.14: BES bank could need €4bn capital increase - analysts http://www.theportugalnews.com/news/bes-bank-could-need-4bn-capital-increase-analysts/32278

Jornal de Notícias, 10.12.14: Bank patriarch should stop complaining (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE155108-Bank-patriarch-should-stop-complaining

Jornal de Negócios, 05.05.15: Portugal must punish BES bankruptcy culprits (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE162715-Portugal-must-punish-BES-bankruptcy-culprits

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