Portugal bank slated for sale gets new management

AP News
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Posted: Sep 14, 2014 1:13 PM

LISBON, Portugal (AP) — The Bank of Portugal has appointed a new senior management team to run Novo Banco, a bank which the government wants to sell and recoup the 3.9 billion euros ($5 billion) taxpayers provided to resolve Portugal's biggest financial scandal.

The financial regulator said in a statement Sunday that Eduardo Stock da Cunha, previously at Banco Santander and Lloyds, will be Novo Banco's chief executive.

Novo Banco kept the healthy business of Banco Espirito Santo, which collapsed last month amid unreported losses and what regulators say were fraudulent schemes.

Novo Banco's senior leadership quit Saturday after seven weeks in charge, saying the government had changed its plans for the bank. The government is believed to be keen to accelerate the sale before a general election next year.