Swiss watchdog investigates Espirito Santo private bank

Switzerland's financial regulator said on Wednesday it is investigating Banque Privee Espirito Santo SA (BPES), a Swiss private bank which is part of the Espirito Santo family's troubled business empire. The Lausanne-based bank is owned by Espirito Santo Financial Group (ESFG), which has been under creditor protection since late July after it buckled under massive debts linked to its founding family. ESFG was the biggest shareholder in Banco Espirito Santo, which was Portugal's largest listed bank that had to be rescued on Aug 4 in a 4.9 billion euro (6.44 billion US dollar) deal. The Swiss regulator FINMA said its investigation would focus on the role of the Swiss bank, which is undergoing voluntary liquidation, in distributing securities and financial products for the wider group. ‘The influence of the owners of the bank on procedures in Switzerland will also be examined,’ FINMA said in a statement posted on its website, according to Reuters.