Portugal Puts Up $6.6 Billion to Save Ailing Bank
LISBON, Portugal -- Portuguese authorities are providing 4.9 billion euros ($6.6 billion) in an emergency rescue to prevent the collapse of ailing bank Banco Espirito Santo, one of the eurozone country's oldest and biggest financial institutions.
Bank of Portugal Governor Carlos Costa said late Sunday the bank's healthy businesses will be spun off and its toxic assets will be placed in a so-called bad bank.
The move came after Banco Espirito Santo's share price lost around 75% of its value last week. The stocks crashed after the bank reported a record half-year loss of 3.58 billion euros.
A scandal erupted in May, after an audit found accounting irregularities and huge unreported debts at the bank.
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