Santander Group President and family investigated in Spain

James ViP

Member since 20 June 2010

Brazil & Canada Expert

JamesViP16 January 2012 12:37:38

11272

The president of Santander Group, Emilio Botin, and his family are being investigated for financial fraud, money laundering and a series of other irregularities in Spain. This comes as a result of the discovery of massive offshore deposits, especially that with HSBC in Switzerland, a fact that on its face would seem rather strange. Why would a "global" bank like Santander need to deposit funds in a competing bank in Switzerland if not to hide those funds?

This could have a negative impact here in Brazil given that since Santander bought out Banco Real (ABN Amro) it is now Brazil's third largest banking institution. There is little doubt that Brazil's Central Bank and the Receita Federal will be putting Santander's operations here in Brazil under a microscope since Brazil accounts for fully 25% of Santander's global profits.If any irregularities are found here it could send a shockwave through the banking industry in Brazil. Regardless of what happens it looks like Santander is in for a rough ride. Just the hint of trouble could have a negative impact on Santander Brazil.