Spain Judge Orders Detention of Ex-CAM Bank Executives

A Spanish judge ordered the detention of five former executives of Caja de Ahorros del Mediterraneo as he investigates alleged irregularities in the running of the failed savings bank.

Police have already detained two executives including former managing director Roberto Lopez Abad by order of National Court Judge Javier Gomez Bermudez, a Madrid-based court spokesman said in a phone interview today. The executives are due to appear before the judge tomorrow, said the spokesman, who asked not to be named in line with the court’s policy.

The Bank of Spain said in July 2011 it would take over CAM and remove its management as losses linked to real estate loans wrecked its business. Banco Sabadell SA then agreed to buy the lender for one euro in a deal financed and guaranteed by other Spanish banks that allowed the Bank of Spain to remove CAM from public ownership.

There were no listings for Lopez Abad in the Valencia region, according to the online phone directory www.blancasamarillas.es.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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