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Spain’s biggest lender Santander fined €16.9 mn for mis-selling

Published time: February 18, 2014 13:57
Reuters / Kacper Pempel

Reuters / Kacper Pempel

Spanish banking has suffered another blow, after its biggest lender Banco Santander was fined €16.9 million for not revealing to some bond buyers “necessary information” ahead of the financial crisis.

The bank, also the Euro zone's biggest by market value, had committed a “very grave infraction” while selling its so-called Valores bonds, said the Comisión Nacional del Mercado de Valores (CNMV), the country’s stock market regulator.

In 2007 Santander sold €7 billion of its convertible bonds as it needed money to acquire the Dutch financial group ABN Amro, the Financial Times (FT) reports. But the financial crisis sent Santander’s shares plummeting, which translated into huge losses for investors.

Santander denied any wrongdoing and said it would appeal.

The Santander fine came on the same day as Jaime Botín, the younger brother of Emilio, the executive chairman of the bank, was fined another €500,000 for not fully disclosing his holdings in Spanish retail bank Bankinter. In the same ruling, CNMV penalized three other investment funds €400,000 for improper declaration of their stakes in Bankinter.

Such large fines against Spain’s biggest lender come at a time when the country’s banking is struggling to recover from the 2012 bailout. The latest data from the Bank of Spain released Tuesday show that Spain’s non-performing loan ratio jumped to a new record high of 13.6 percent in December. The mounting junk debt also weighs on Spain’s tentative recovery, as credit to households was down 9.8 percent year on year.

Overall, bank lending in Spain has dipped 22 percent since 2008, while between 2005 and 2008 it jumped 133 percent, the Financial Times quotes Victor Echevarria of BNP Paribas.

Comments (3)


mergon 19.02.2014 13:06

Santander are not worried because their scheme made far more than the fine and it was not their own money in the first place ,because bankers dont use their money they use yours.

All the banksters and insurance companies do this because the fine is always smaller than the take ,all of these schemes are passed as a goer even though they know its illegal but no one ever gets prosecuted in the legal dept !
No one is going to jail or banned as a director or anything like it .
Look at mp,s and ministers they steal us blind but no one goes to prison !


mergon 18.02.2014 16:09

Hands up how many people keep their money in a bank?
How many people think that there another financial crisis
looming ?

How many people think that bankers dream up illegal schemes knowing that their bank of legal eagles will pass them because they can make more than enough money to pay the fine with !

How many people think that 2020 is the chosen year for police states in the EU countries to come into force !


tateishi 18.02.2014 15:14

Santander is one of the Spanish banks in deep debt together with BBVA,Bankia, & Sabatel, which are burdened with huge non performing real estates and construction debt. Spanish people are living in poverty with some families can eat only 2 meals or less. Those who are saying that Spanish economy is recevering is just in day dream. Around 60% of youths are unemployd. Some Spaish people are really afraid of huge riots brewing, and the same applies to France. Both Spanish and French people have been known very revolutionary, They will go to street to overthrow governments. Hollande has a support of only 18%.

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