Funds accuse Brussels of failing in assessing Popular

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Algebris, Anchorage and Ronit accuse the Commission of being ultimately responsible for the mistakes of the resolution issued by the Single Popular Adjudication Board (JUR). 

These funds have raised two actions before the Court of Justice of the EU (CJEU), one against and one JUR specifically directed against the European Commission. 

It is unique that investors have so far filed two separate actions among the 52 declared admissible the CJEU. 

The key argument of the resources of the funds is that the European Commission failed to appropriate assessment or in any case of discretionary aspects of the resolution adopted jur move according to legal sources. 

It is an argument that other investors have not argued, and bearing in Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 laying down the rules of procedure for the resolution of credit institutions within the framework of a Single Resolution Mechanism and a Single Resolution Fund.

Thus, the regulation stipulates in paragraph 24 that "the assessment of the discretionary aspects of decisions taken by the Board resolution should be made by the Commission". 

And at 26, specifically that "if the Board considers that all criteria for starting a resolution are met, should adopt the resolver. [In] the procedure for the adoption of the resolver [...] involved both the Commission and the Council. [...]. 

Accordingly, this Regulation provides that the device resolution adopted by the Board only enter into force if, within 24 hours after its adoption by the Board, neither the Commission nor the Council have objected to it, or if the device resolution is approved by the Commission. " 

The funds argue that Brussels should have waited 24 hours after JUR adopt the resolution before giving validation necessary for its entry into force. 

Instead, according to non-confidential documents and statements of JUR and the Commission, the process only took minutes at dawn on 7 June (see attached information).

Funds lost, along with Pimco, which does not sign demands, 850 million in the resolution, and are advised by Quinn Emanuel. In both resources they made available to seek the annulment of the resolution. In the coming months, will raise other resources to claim compensation. 

The European Commission endorsed the resolution of the Single Adjudication Board (JUR) between 5.13 pm on 7 June when JUR transmitted the resolution, and 6.00, time in which he was notified Santander your purchase offer popular was accepted. At 6.30 JUR resolution came into force. 

At 7 hours, the JUR decides to publish a summary of its decision, which explains in a press conference its president, Elke König, at 11 hours.

Ask funds apply the 'Meroni doctrine' of the European Court, which requires that any discretionary power to take decisions involving requiring political judgments must be exercised by a European institution such as the Commission or the Council. According to Commissioner Barnier, only the Commission has the resources and is able to take highly technical decisions in a short period of time. He failed to Popular, brandished funds, Expansion reported.