Goldmans Sachs Unloads Espirito Santo Loans On Hedge Funds

Goldman Sachs Group Inc (NYSE:GS) was not just buying shares in Banco Espirito Santo; it also loaned funds to the Portuguese bank. Goldman Sachs loaned $835 million to Banco Espirito Santo SA (ELI:BES); at a time when the bank was knee-deep in financial troubles, reports WSJ. Goldman Sachs also held a 2.8% stake in the share of capital of BES; the position was slashed in early August, during which time, shares of BES fell by 80%.

Distressed hedge funds buy Espirito Santo credit

The Wall Street Journal reports that after looking unsuccessfully for suitable outside buyers to unload its huge...