BANCO Santander has been fined €16.9 million for giving insufficient information to bond buyers before the financial crisis.

Spain’s biggest bank was deemed to have committed a ‘very grave infraction’ by the market regulator, CNMV.

The Eurozone’s biggest lender sold €7 billion of its convertible bonds in 2007 to fund its purchase of Dutch financial group ABN Amro.

But the financial crisis sent Santander’s shares plummeting, which translated into huge losses for investors.

By the time the bonds were exchanged into shares in 2012, the stock had plummeted to around half its value.

It led to investors at Santander’s annual shareholder meeting had called on executives to provide redress.

Santander denies any wrongdoing and has announced it will appeal.

The fine came on the same day as Jaime Botín, the younger brother of Emilio Botin, the executive chairman of Santander, was fined another €500,000 for not fully disclosing his holdings in Spanish retail bank Bankinter.

Imogen Calderwood

About Imogen Calderwood

DO YOU HAVE NEWS FOR US at Spain’s most popular English newspaper - the Olive Press? Contact us now via email: [email protected] or call 951 273 575. To contact the newsdesk out of regular office hours please call +34 665 798 618.

1 COMMENT

This site uses Akismet to reduce spam. Learn how your comment data is processed.