Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Court Chides Santander for Pulling Preferred Share Case Appeal

May 9 (Bloomberg) -- Spain’s Supreme Court chided Banco Santander SA, Spain’s biggest bank, for abandoning an appeal against a ruling that ordered it to return money to clients who bought preferred shares.

The decision by Santander robs the court of an opportunity to lay down legal criteria that would help resolve similar cases in the future, the Madrid-based tribunal said in an e-mailed statement today. The court also said it regretted the time lost by its staff in preparing for the hearing.

Sales of preferred shares to their own customers by banks anxious to shore up capital ratios became a scandal in Spain as clients said they weren’t made aware of the risks of holding the junior debt. Customers with preferred shares in nationalized banks such as Bankia have been left facing losses under the burden-sharing terms imposed by Europe as part of its bailout for Spain’s banking system last year.

In 2011, Santander lost an appeal over a decision by a court in Mallorca to nullify the sale of preferred shares to two clients who had invested about 225,000 euros ($294,640) in the securities. Santander’s decision to abandon the appeal means the original ruling stands, the tribunal said.

A spokesman for Santander, who asked not to be identified by name, said the bank didn’t have any immediate comment.

To contact the reporter on this story: Charles Penty in Madrid at

To contact the editor responsible for this story: Frank Connelly at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.