US Justice forces Santander to reveal information about Popular

US Justice forces Santander to reveal information about Popular


The Federal Court of the Southern District of New York has ruled that Banco Santander must disclose key documentation on the resolution of Banco Popular and its subsequent purchase by the entity at the symbolic price of one euro, according to the ruling to which Europa Press has had access.

Specifically, Judge Eduardo Ramos has ruled that the US subsidiary Santander Investment Services (SIS) must disclose this information, although it has rejected it in the case of the entities Banco Santander SA, Santander Holding USA and Santander Bank NA. This decision is based on whether the entities have their main activity in New York or not.

Both the group of Mexican investors led by Antonio del Valle as investment funds Pimco and Anchorage Capital, represented by the firm Quinn Emanuel, began in March and April legal procedures in the United States to obtain this information, considering that the US Justice is "more guarantee" than the Spanish in this type of process.

The procedure, known as «Discovery», allows the plaintiffs to request evidence on a legal case opened abroad provided that the defendant has a presence in the United States, as is the case of Banco Santander, and is considered to hold relevant documentation.

"We are delighted with the judge's decision. Not only has he given orders to Santander Investment to deliver everything related to Popular, he also dictates that the "Discovery" process has effects anywhere in the world, "said Richard East, managing partner of Quinn Emanuel Law Firm. representative of several affected with Popular bonds. "Santander achieved great benefits with the acquisition of Banco Popular, while the bondholders saw that their investment was reduced to zero," he added.

According to Europa Press informed sources close to the process, the US judge. He met with the plaintiffs on October 12 and yesterday he made his decision.

The two funds represented by Quinn Emanuel also joined Algebris –between the three lost around 850 million euros with the resolution of Banco Popular-. They requested 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 communications between the presidents of both entities regarding the negotiation process.

Also, the group of bondholders composed of Pimco, Anchorage, Algebris and Ronit has other fronts open in the National Court against the Fund for Orderly Bank Restructuring (FROB) and in the Court of Justice of the European Union against the Sole Resolution Board, although not all funds are represented in all proceedings.

For its part, the group of Mexican investors led by Antonio del Valle and self-styled MIG, composed of 44 individuals and 10 companies and investment funds, registered losses of 470 million euros with the resolution of the entity. In addition to the legal procedure in the United States, it submitted two requests for international arbitration against Spain, considering that the resolution and subsequent sale of the entity failed to comply with the guarantees and protections established in the Bilateral Investment Treaty Spain-Mexico (2006).

In particular, the MIG presented a request for arbitration before the International Center for Settlement of Investment Disputes (ICSID), a World Bank agency, as well as a notice of arbitration under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL).


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