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Former head of collapsed Portuguese bank under house arrest

Ricardo Selgado is being investigated over allegations of forgery, breach of trust, tax evasion and money laundering

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Former head of collapsed Portuguese bank under house arrest

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The former head of a collapsed Portuguese bank has been placed under house arrest.

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"We think it's a disproportionate measure and that's also the opinion of others linked to this process"

Ricardo Selgado, head of Banco Espirito Santo (BES) for more than 20 years, is being investigated over allegations of forgery, breach of trust, tax evasion and money laundering.

Selgado was questioned by a state prosecutor on Monday and then appeared in front of a magistrate for 12 hours on Friday.

His lawyer, Francisco Proença de Carvalho, said: “We think it’s a disproportionate measure – and that’s also the opinion of others linked to this process – and so with all due respect for the rule of law and for the rules we will appeal.”

The bank was once one of Portugal’s largest lenders but last year it announced record losses, threatening to damage the country’s economic recovery.