Espirito Santo Bank's parent company sparks market turbulence
Banco Espirito Santo shares slumped by 16 percent
MIAMI – Miami bank's European parent company suspended trading its shares and bonds, after dropping to record lows Thursday. The market turmoil it caused in Europe sent U.S. stocks tumbling at the open.
Brickell's Espirito Santo Bank -- a Florida chartered bank – reports profitability. Banco Espirito Santo, Portugal's second biggest lender, is its parent financial company. And Espirito Santo International is its main share holder.
The problems that increased the 94-year-old family-led investment company's need for capital began at Espirito Santo International. The financial institution issued a July 8 statement reporting it had missed short-term debt payments.
The Miami bank's parent company reported losses 2013 and 2011. Its shares slumped by 17 percent. According to Bloomberg data credit-default swaps on Banco Espirito Santo senior debt were the worst performing among financial companies around the world this week.
BANK LEADERSHIP: A reported $1.36 billion capital raise reduced the Espirito Santo family's ownership stake. Ricardo Espirito Santo Silva Salgado, 69, plans to resign. He is the great-grandson of the bank's founder. The bank plans to announce its new leadership at the end of July.
RELATED ORGANIZATIONS: Banco Espirito Santo do Oriente in Macau, Banco Espirito santo Cabo Verde, ES Bank Panama, Banco Espirito Santo Venezuela, Banco Best, Companhia de Seguros Tranquilidade, ES Capital and Crediflash.,
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