Bank of Spain fines managers of church-controlled lender

Thirty-eight current and former executives from Cajasur are being fined a collective 2.4 million euros for their mismanagement of the Córdoba-based savings bank, which had to be seized by the state in May 2010.

Two presidents, as well as vice-presidents, board members and other high-ranking managers are being held responsible for the failure of the savings bank, which was run by the Roman Catholic Church and posted losses of 600 million euros when the state stepped in. On January 1 of this year, the bank transferred all its assets and liabilities to BBK Bank.

The biggest fine is for the priest Santiago Gómez Sierra, who is being barred from working for any financial firm for a period of two years, and sanctioned with 180,000 euros. Gómez Sierra is currently the auxiliary bishop of Seville.

He and the group of religious leaders who sat on the board were considered responsible for sinking an attempted merger between Cajasur and Málaga's Unicaja in May 2010. This merger had been a major requisite imposed by the Bank of Spain to save Cajasur from financial failure.