Following Deutsche Bank's campaign to raise 8 billion euros in capital, the biggest bank in Portugal is under fire. The auditor KPMG is accusing Banco Espiritu Santo Internacional, which is the investment arm of Portugal's central bank, of accounting irregularities.
The criticisms have sounded alarms in neighboring countries, because just when everyone thouht that European banks had cleaned up their balance sheets, new problems are popping up. With Draghi'hs stress tests coming up in the fall, the banks have some time to fix any mistakes and take last-minute measures before the European Central Bank (ECB) scrutinizes their balance sheets. At this point, the Spanish banks are in a lot safer position than their peers in other peripheral nations.
