Banesto

Source: Wikipedia, the free encyclopedia.
For the cycling team formerly sponsored by Banesto, see Movistar Team.
Banco Español de Crédito, S.A.
Banco Santander
Websitebanesto.es

Banco Español de Crédito, S.A. (Spanish pronunciation:

capital increase planned in 1993 by its Executive Chairman Mario Conde together with J.P. Morgan became the biggest restructuring plan in the history of Europe, involving asset sales and a rights issue of US$1.2 billion, after which Banesto was expected to become the largest financial firm in Europe.[4] Although initially accepted by the Bank of Spain
, it was later frustrated following intervention on the basis of financial transparency.

In October 1987,

Comisión Nacional del Mercado de Valores, the financial regulator of the national securities markets, decided to impose a trading halt on Banesto, and Luis Ángel Rojo, the Governor of the Bank of Spain, communicated the intervention of the banking entity, tasking Alfredo Sáenz Abad with chairing the board of directors of Banesto in a temporary basis.[9] Conde, who stayed in preventive detention from December 1994 to January 1995, faced a trail of judicial problems.[10] He was sentenced to 10 years in prison in March 2000 by the Audiencia Nacional (raised to 20 years in 2002 by the Supreme Court).[10] He served 11 years before being paroled.[11]

After the intervention, the team of managers from

Argentaria.[12]

In 2012, Santander announced it would absorb Banesto and rebrand all of its divisions and offices.[13]

Outside of Spain, Banesto became well-known as the sponsor of the

Miguel Indurain, the first rider to win five consecutive Tour de France. The team is currently now known as Movistar Team
.

History

See also: Sociedad de Crédito Mobiliario Español

Banco Español de Crédito is rooted in a French-owned banking company which, promoted by Isaac Pereire, was established in

public debt
, and the granting of financial credits to public companies.

Cayetano Sánchez Bustillo, first Chairman of Banesto, 1908

After the

Raimundo Fernández Villaverde of 1900 and with the repatriation of the capitals of the former American colonies, the shareholders decide to liquidate the company and establish a new one, the Credit Bank of Spain, on 1 May 1902, with a capital stock of 20 million pesetas represented by 80,000 shares with a nominal value of 250 pesetas. [citation needed]The bank's promoter was a French group chaired by Gustavo Pereire, administrator of the Company of the Iron Roads of Northern Spain. This initiative was joined by Cayetano Sánchez Bustillo and León Cocagne (deputy director of Banco Hipotecario de España) on behalf of a group of Spanish investors. The first headquarters, the Building of the Furniture Credit Society, was located in Paseo de Recoletos, Madrid.[citation needed
]

From 1940, Banesto began an expansion and absorption process of other entities that placed it amongst the most prominent Spanish banks. In 1955, Banesto acquired Banco de Vitoria, which it maintained as a subsidiary until its full integration in 2003, and in 1978 it acquired Banco Coca, then chaired by Ignacio Coca.

Former logo of Banesto

Banesto acquired

BBVA
bought BHIF.

chair of the bank between 2002 and November 2010, when she moved to the position of CEO of Santander UK
.

The Santander Group announced in December 2012 that it would purchase the remaining 10% of Banesto that it does not currently own, and will merge the business with the existing Banco Santander business in Spain.[15]

1993 crisis & intervention

A Banesto branch in Oviedo, Spain

In December 1993, the Spanish National Stock Exchange Commission (

Comisión Nacional del Mercado de Valores) suspended trading shares in Banesto following a fall in value estimated between 6.56% and 6.8%[2] from 2,135 to 1,995 Spanish pesetas and sharp increases in loan delinquencies observed by the Spanish government in the previous quarter, Quarter three of 1993.[16]

Alfredo Pastor, then-Secretary of The State for the Economy stated that inspectors from the Bank of Spain had concluded that Banesto lacked resources to cover liabilities and that the management of the bank was not able to secure the necessary financing to remedy the situation.[2] In addition to its suspension, the Spanish government removed its chairman Mario Conde, replacing him with a board containing representatives of five other private banks: BBV, (now BBVA), BCH (now Santander), Argentaria (now a part of BBVA), Santander and Popular (now Santander)[2][16]

Banco Español de Crédito on Plaça de Catalunya, Barcelona

According to

El Pais dubbed the shortfall in financial resources a "hole", which has had varying estimates.[16] The British newspaper The Independent cited the shortfall as 605 billion Pesetas[17] equating to $7.1 billion as of January 2019 (£5.6bn).[18]

Chairmen

Banesto Golf Tour

Starting in 2009, Banesto sponsored a women's golf mini-tour with eight events, all in Spain.[19] The tour in 2010 is scheduled for seven events.[20]

See also

Wikimedia Commons has media related to Banesto.

References

  1. ^ a b c d e f g "Annual Report 2009" (PDF) (in Spanish). Banesto. Archived from the original (PDF) on 2012-12-24. Retrieved 2010-04-11.
  2. ^
    ISSN 0362-4331
    . Retrieved 12 June 2012.
  3. ^ Villaécija, Raquel (11 April 2011). "Banesto: el declive de un gigante" [Banesto: The Decline of a Giant]. El Mundo (in Spanish). Retrieved 12 June 2020.
  4. ^ Webster, Justin (9 January 1994). "J.P. Morgan caught up in a Spanish Inquisition: The American blue-chip bank prides itself on making sound investments, but its role in the Banesto crisis may blow its credibility". The Independent. Retrieved 12 June 2020.
  5. ABC
    (in Spanish). 29 July 2002.
  6. ^ Cuartango, Pedro G. (12 April 2016). "Soberbio, ambicioso y amoral" [Proud, Ambitious and Amoral]. El Mundo (in Spanish). Retrieved 12 June 2020.
  7. ^ "De estudio sobre la intervención del Banco Español de Crédito" [Study on the intervention of the Spanish Credit Bank] (PDF). Diario de Sesiones del Congreso de los Diputados (in Spanish) (323). 19 October 1994.
  8. ^ Noceda, Miguel Ángel (12 April 2016). "Mario Conde: The brief but brilliant career of a failed banker". El País.
  9. ^ "El año que cambio Banesto" [The Year Banesto Changed]. El País. 28 December 1994.
  10. ^ a b Remírez Ganuza, Carmen (30 July 2002). "El Supremo eleva de 10 a 20 años la condena impuesta a Mario Conde por el 'caso Banesto'" [The Supreme Court increases the sentence imposed on Mario Conde for the 'Banesto case' from 10 to 20 years]. El Mundo (in Spanish).
  11. ^ "Detenido Mario Conde, acusado de blanquear y repatriar el dinero saqueado a Banesto" [Mario Conde arrested, accused of laundering and returning the looted money to Banesto]. Faro de Vigo (in Spanish). 12 April 2016. Retrieved 12 June 2020.
  12. ^ "Santander compra Banesto por 313,000 millones y se convierte en el líder bancario" [Santander acquires Banesto for 313,476 million]. El País (in Spanish). 26 April 1994. Retrieved 12 June 2020.
  13. ^ "Santander absorbs Banesto and Banif and shuts branches". BBC News. 17 December 2012. Retrieved 29 September 2014.
  14. ISBN 978-8483073810
    .
  15. ^ "Santander absorbs Banesto and Banif and shuts branches". BBC News. 17 December 2012. Retrieved 17 December 2012.
  16. ^
    ISSN 1134-6582
    . Retrieved 12 June 2020.
  17. ^ Nash, Elizabeth (1996-05-29). "'Black sheep' banker charged with Banesto fraud". The Independent. London. Retrieved 2019-01-05.
  18. ^ According to Bank of England Data for 31 December 1991 (closest value to date provided). 1) 605000000000pst / 209.234 gbp 2) Roughly £2,891,499,469.49 according to the December 31 exchange rate between Pesetas and Pounds, 3) Applying interest per the Bank of England data (£1 in 1993 is £1.94 in 2019) = £2,891,499,469.49 * £1.94 = £5,609,508,970.8106 4) With £1 at $1.27 exchange rate this is £5,609,508,970.8106 * $ 1.27 = $7,140,916,138.86 Roughly £5.6 billion and $7.1 billion.
  19. ^ "Clasificación General Circuito 2009". Banesto Golf Tour. 2009. Archived from the original on 7 July 2011. Retrieved 12 October 2010.
  20. ^ "Calendario Circuito 2010". Banesto Golf Tour. 2010. Archived from the original on 3 May 2010. Retrieved 12 October 2010.

External links

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