02/09/2018 | 05:31am EST
FRANKFURT (Reuters) - The sub-zero valuation used by European authorities when auctioning off Spain's failing Banco Popular last year was "flawed" and casts a shadow over the process, a law firm representing some disgruntled investors in the bank claimed on Friday.
The EU's Single Resolution Board (SRB) published a heavily redacted version of its valuation report last week, in which it said Banco Popular (BP) was likely to have a negative value of 2 billion euros less than zero.
"The flawed valuation of BP raises fundamental questions about the validity of every step taken by the SRB in this so-called 'textbook' resolution process," Richard East, lead partner of law firm Quinn Emanuel said in a position paper.