Banco Popular investors hire attorneys to explore litigation options – Financial Times
A group of investors burnt in the failure of Banco Popular have hired international law firm Quinn Emanuel to explore litigation options.
The bondholder group, which includes Pimco, Anchorage, Algebris and Ronit Capital, make up a “material percentage” of holders of the bank’s junior bonds.
Santander acquired Banco Popular for the symbolic sum of €1 in early June, with equity and junior bondholders written down as part of the resolution process.
In a conference call following the acquisition, Santander confirmed it had set aside funds for “potential litigation risk” but did not confirm a specific amount.
Quinn Emanuel says it will explore the actions and communications of regulators that led to the assessment the bank was “failing or likely to fail”, as well as actions from bank management and the regulatory appraisal.
Lead partner, Richard East, of Quinn Emanuel, London commented: “We are delighted to be chosen to represent these funds, all of whom have suffered disproportionate and unnecessary losses as a result of the implementation of the SRB’s decision to impose a resolution scheme on Banco Popular and its subsequent implementation by the Spanish domestic regulator, the FROB”
“A number of serious issues have already emerged and we will be reviewing the resolution scheme and the events leading up to the decisions taken and, where necessary, bringing claims to restore the position and/or to seek damages.”