The pain continues for Espírito Santo. Yesterday the Portuguese bank's shares fell another 8%, and Nomura ended up with 5% of its capital after backing a loan for the holding company Espírito Santo International, which is BES's majority shareholder. The loan will give BES the money it needs to stay afloat.
Creditors are taking necessary measures to avoid a bankruptcy. At the same time, the Central Bank of Portugal wants to push the Espírito Santo family out of BES in order to solve the crisis quickly. This is a move in the right direction, but comes too late. Because fears are mounting that the BES issue will undermine trust in the rest of the European banking sector, it is necessary to make a bold move that dries up doubts about the bank's future.
