The order states that in the event the Fund for Orderly Bank Restructuring (FROB) does not apply to the rescue of Banco de Madrid, the court will continue the processing of the application of the competition. Thus, if the FROB decided to open a restructuring or liquidation, the court will stop the process.
Yesterday, the new directors of Banco Madrid requested the voluntary bankruptcy of the company due to “severe deterioration suffered in its economic-financial “.
The decision was based situation after learning of the decision of the Financial Crisis Enforcement Network (FinCEN) US to consider its parent, Banca Privada d’Andorra (BPA), presumably related to money laundering.
On March 10, the National Institute of Finance (INAF), the financial regulator Andorra, intervened BPA, entity being investigated by the Government of the United States allegedly channeling funds from organized crime.
That day, the Bank of Spain Madrid remembered intervene Bank, a subsidiary of BPA, whose board resigned en bloc that night to “facilitate the intervening action”.
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