Spain's High Court is suspending legal proceedings against the country's Fund for Orderly Bank Restructuring, or FROB, over the resolution of Banco Popular Español SA, pending rulings by the European Court of Justice, El Economista reported March 7.
Banco Santander SA bought the bank for €1 on June 7, 2017, after the European Central Bank deemed that it was "failing or likely to fail." Popular's resolution has been the subject of many lawsuits from institutional and retail investors.
The paper said the Spanish court was waiting for the European Court of Justice ruling to help provide it with a legal basis regarding the complaints made against the FROB in Spain. Investors who lost their money after Popular was wound down have filed complaints against the EU's Single Resolution Board in the European Court of Justice.
The Single Resolution Board winds down lenders once the ECB declares them nonviable, and the resolution of Banco Popular was carried out in conjunction with the FROB.
