A judge in New York has denied that Banco Santander has to provide documentation on the purchase of Banco Popular for one euro in June 2017 to the PIMCO (Pacific Investment Management Company) and Anchorage funds and to the group of Mexican investors led by Antonio del Valley. Both were Popular bondholders and lost their investment, around 1,000 million euros, they claim, when the Resolution Mechanism of the European Central Bank ordered the resolution of the entity and its delivery to Santander, the only one that had submitted an offer. On the other hand, it does order that a US subsidiary of the bank presided over by Patricia Botín hand over to the funds the documentation at its disposal.
In a ruling made public at dawn on Saturday, Spanish time, Judge Edgardo Ramos rejected the main request of the bondholders, who claimed the Santander (in particular the entities Banco Santander SA, Santander Holdings USA and Santander Bank), which it is known as a discovery (discovery), a figure under which an entity can be required to deliver documentation to another relative to a judicial case opened abroad -the resolution of the Popular is in the courts in Spain- as long as the company that has to deliver such documentation is filed in the district where the request is made, in this case New York.
In April and March they made their requests for documentation, which included information on various aspects of the resolution, including Popular's assessments made by Santander, documentation related to the requests for Emergency Liquidity Assistance (ELA) and the communications between the presidents of both entities regarding the negotiation process.
Judge Ramos extends his background to support the rejection of Santander delivering these papers. Finally, it concludes that, although it carries out activity in the city – the petitioners state that Santander has "subsidiaries" in the city, it is supervised by the Department of Financial Services of the State, which manages 14,800 million dollars (12,800 million euros) in assets in the city, is the ninth largest bank in terms of assets, listed on Wall Street, where Patricia Botin recently rang the bell, and manages the entire US business from there – it can not be said that Santander has the headquarters of its main activity in the city. "The offices of Santander in New York, its activities and the LikedIn profile of one of its executives -which claims to be based in the city- are not enough contacts to conclude that Santander has its home in this district," says the judge. . Therefore, it denies PIMCO and Del Valle that they have the right to claim the documentation.
However, he understands that Santander Investment Securities Inc., a subsidiary of the entity, does have its headquarters in the city, among other things because the Santader admits this. Therefore, he estimates PIMCO's request (del Valle did not request it) to deliver documentation.