THE Provincial Court of Alicante has ordered the Banco Espirito Santo (BES) to return €410,000 to a client who acquired nearly a million euros in bonds and high risk investments of the bank, which led to a 50 per cent funding loss.
The banks’ client had signed numerous bonds between 2005 to 2009, along with her sick husband, on the recommendation of the bank’s employees and advisers. The court acknowledged the woman’s claim that she had signed for the products “with consent by mistake, with the lack of adequate information on the characteristics of such products, their complexity and risk, and not being suitable to the plaintiff’s investor profile.”
The court added that obligations of due care and information by the bank were breached, explanations of the products were insufficient and written contracts were difficult to understand and did not specify the huge drawbacks.
This lack of proper advice led to losses of nearly 50 per cent with €410,000 ordered back to the complainant. Following the bank’s restructuring from the financial crisis, ultimately it will be Novo Banco which must eventually return the lost money.