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Thursday, July 31, 2014

Portugal's Bandits

Ricardo Espírito Santo Silva Salgado is known in Portugal as “Dono disto tudo,” or “Owner of everything.’  Portugal’s answer to the Rothschilds, the oligarch’s family has been calling the shots in Portugal for over a century. It’s the largest shareholder of the country’s biggest stock market listed bank, and controls a string of other financial companies, agricultural, energy, health care and property companies in Portugal and across the globe.

Last week Ricardo Salgado was arrested. He was detained – later released on bail for €3m – in connection with a long-running investigation into money laundering and tax evasion. Ricardo Salgado’s arrest didn’t come about of nowhere. The Espírito Santo family has been under “intense scrutiny” since earlier this year when an audit ordered by the central bank discovered accounting irregularities at the Luxembourg-registered holding company ESI. The central bank has intervened, ejecting Mr Salgado and barring the family from further involvement in the management of Banco Espírito Santo; this followed loss of control of the bank after a €1bn capital increase to shore up the banks finances, even if the family remains the largest single shareholder. Tied to the bank through cross shareholdings, Portugal Telecom has run into trouble with a planned merger with Oi, operator of one of Brazil’s biggest wireless networks, after the Espírito Santo family failed to repay more than $1bn it owed to the telco.

With ESI and its 100%-owned Rioforte now preparing for bankruptcy, the country’s President Anibal Cavaco Silva has admitted that the failure could be systemic. As is the rule in any country where big money is in charge, the law for white collar crime is skewed to the wealthy who can easily afford the best lawyers, bail cash or damages to keep them out of jail. In the end Big Banking – propped up by mega bail outs – will come out of this mess just fine. And the people will keep paying. Until they decide, collectively, they’ve had enough.

From here

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