Op-Ed: “Novo Banco: yet another Illustration of the Need for a strong(er) Banking Union”

Ten years have passed since the Portuguese credit institution Banco Espírito Santo (BES) failed and was resolved, and since ‘floor’ clauses previously commonly imposed on their consumers by Spanish banks were found to be illegal (see, for instance ‘Systematising Case Law, De-Systematising the Remedies and De-Vulnerating the Consumer. Comments on Caixabank and Others (C-450/22)’, by Dominik Dworniczak). Despite some rich case law and a parliamentary inquiry dedicated to BES’s failure, some issues remained open, notably in relation to the cross-border repercussions of the resolution of BES and to the obligations of a bridge bank. In a decision it rendered on 5 September, the Court of Justice has clarified these aspects in response to reque