February 17, 2018 / 11:09 AM / 7 months ago

Failed Spanish lender Popular lost 13.6 bln euros in 2017

MADRID, Feb 17 (Reuters) - Failed Spanish lender Banco Popular had losses of 13.6 billion euros ($16.9 billion) last year when it was rescued by European authorities and taken over by bigger rival Banco Santander, it said in a regulatory notice late on Friday.

The news will likely add to a controversy between investors who lost money in the rescue and authorities and Santander who say the sale of Popular, saddled with bad debt and facing a run on its deposits, for one nominal euro in June, was the best possible solution for depositors.

Investors whose shares and bonds in the bank were wiped out and are now seeking redress say the sale was based on a “flawed” negative valuation. An independent report from Deloitte showed the bank could have been worth up to 1.3 billion euros when it was sold.

Santander carried out a 7-billion-euro capital raise to cover for property writedowns at Popular and said restructuring costs, including the lay-off of around 2,000 staff, could total 1.3 billion euros. ($1 = 0.8061 euros) ($1 = 0.8061 euros) (Reporting by Julien Toyer; Editing by Andrew Bolton)

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