BES\\\' shares tumble after management change

Shares in Portugal’s largest listed bank, Banco Espirito Santo (BES), plunged on Monday as the arrival of new directors failed to shake off worries about the founding family’s empire. After posting an early gain of almost 6.0 per cent on news that new managers had taken over, BES shares then nosedived. When the market closed, they were down by 7.48 per cent at 0.44 euros. The PSI-20 index on which the bank’s shares are listed was 0.63pc higher overall. BES shares were suspended from trading last week after slumping more than 17pc on Thursday, and they lost another 5.5pc on Friday as trading resumed. Under pressure from Portugal’s central bank, BES named a new team of directors on Sunday, with former boss Ricardo Espirito Santo Salgado handing over to economist and former central bank official Vitor Bento. Officials in Lisbon and other eurozone capitals want to ensure that trouble at BES, which rocked markets last week, does not affect other financial networks. Concerns that the troubles could have a wider impact on Portugal – which only 2 months ago exited a three-year, 78-billion-euro ($106b) international bailout -- underscored the eurozone economy’s fragile recovery, according to AFP.