Bloomberg News

Novacaixagalicia Board Member Quits Following Report on Payouts

October 04, 2011

Oct. 4 (Bloomberg) -- A Novacaixagalicia board member said she resigned after a newspaper reported that three executives at the failed Spanish savings bank received a total of 23.6 million euros ($31.2 million) after leaving the company.

Mar Barcon said she resigned today after El Pais reported that Novacaixagalicia set aside the money to cover the costs of the departure of the executives including Francisco Javier Garcia Paredes, a former joint general director.

“I cannot stay in my position after what has happened, knowing that thousands of Galicians are going through hard times,” Barcon, a socialist member of La Coruna city council who was on the 22-member board, said in a phone interview.

Novacaixagalicia was one of three lenders taken over by the Bank of Spain on Sept. 30 after it failed to meet a deadline to bridge a 2.47 billion-euro capital shortfall. The government bailout fund on Sept. 28 fired Maria Dolores Amoros, the general director of Caja de Ahorros del Mediterraneo, a savings bank seized in July, as it probes the award to her of an annual 364,947-euro pension and the preparation of the lender’s accounts.

Paredes declined to comment when reached by telephone, as did spokesmen for Novacaixagalicia and the Bank of Spain.

--Editors: Stephen Taylor, Steve Bailey

To contact the reporter responsible for this story: Charles Penty at

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

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