Controversial bond transfer to Banco Espirito Santo gets green light

A Lisbon court has reversed an earlier ruling, which means the controversial transfer of bonds from a 'good bank' to a 'bad bank' gets the go ahead

TAGS: Financials

Comment by: Anonymous. Posted 7 years ago [2016-05-27 17:01:49]

What a mess, but it just gave me a great idea. In addition to a "good bank" and "bad bank," these reorganizations should also include a "purgatory bank." When a regulator or government wants to keep all its options open, it can put assets or liabilities in the purgatory bank and just shift them "up" or "down" later to good or bad banks as it sees fit.