By Euro Weekly News Media • 17 March 2015 • 12:29
JUST days after the problem stricken bank was taken over by Banco de España, Monday saw the announcement from administrators that Banco Madrid is to enter insolvency proceedings.
The news comes days after the entire board of Banco Madrid resigned and handed management over to the Bank of Spain on Thursday, March 12. The mass resignation was in direct response to a legal action being filed by US law enforcement authorities on Tuesday against the parent company of Banco Madrid, BPA, (Banca Privada de Andora,) and the central bank launching an investigation into accounts of the lender for suspected money laundering activities.
Banco de España said in a statement released on Monday morning: “Since then, there has been a sharp deterioration of Banco Madrid’s financial situation as a consequence of the important withdrawals from client funds, after the latest events this has affected its capacity to meet its obligations forcing us to make this decision.”
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