Business

Former Portuguese bank boss under house arrest

Ricardo Salgado Image copyright Getty Images

Ricardo Salgado, the former boss of the Portuguese bank Banco Espirito Santo (BES), has been placed under house arrest after questioning over the bank's collapse.

His lawyer described the move as "disproportionate".

Last year, Mr Salgado was forced to resign as chief executive after 23 years in charge, amid allegations of accounting fraud.

At a parliamentary hearing in December he denied any wrongdoing.

Mr Salgado was last week questioned by a state prosecutor over fraud, corruption and money laundering allegations. He is one of six people facing the accusations.

Once the country's biggest private lender, BES collapsed after reporting record losses.

Under a government bailout plan, BES's good assets were transferred into a new bank called "Novo Banco" as part of a bailout from the Portuguese government. It was loaned €4.9bn (£3.5bn).

The country itself had only recently emerged from a three-year rescue plan.

Related Topics

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites