The EU's Single Resolution Board on Feb. 2 published a highly controversial report on Banco Popular Español SA by auditors Deloitte, which made the bank's resolution and sale to Banco Santander SA possible.
The report, which has been redacted in many places, values the now-defunct bank at €1.3 billion in the best-case scenario and at negative €8.2 billion in the worst-case scenario, with a best estimate of negative €2 billion. It also says it has had to draft its findings in an "extremely short period of time" — 12 days — when such a report would usually take at least six weeks to complete.
Santander bought the bank for €1 on June 7 after the European Central Bank deemed that it was "failing or likely to fail." The Single Resolution Board winds down lenders once the ECB declares them non-viable.
The winding down of Popular is the subject of a plethora of legal challenges from investors, many of whom requested more details on the transaction and access to the Deloitte report.
