Banco Santander (STD) announced plans to remove current CEO at Sovereign Bancorp, Inc. (SOV) and reduce the bank’s risk-weighted assets by $10 billion – once its acquisition of Sovereign completes.
The issue of Santander’s exposure to Bernard Madoff’s alleged ponzy scam, brought several shareholders to the meeting with heated questions, stiring up tensions between shareholders and CEOs as insults were hurled.
The Madoff scam and Santander’s involvement was brought up on repeated occassions by various individual shareholders as well as by Fernando Zunzunegui, lawyer representing about 100 Santander clients that lost money through this scam.
Several shareholders raised questions and expressed fierce criticism regarding the purchase of Sovereign. Other shareholders even questionned the integrity of the Botin family.