Fraud charges overshadow new Bank of Spain governor: Predecessor may face jail term for alleged insider trading

THE Bank of Spain's governor, Luis Angel Rojo, was sworn in by King Juan Carlos yesterday for a non-renewable six-year term. The ceremony was overshadowed, however, by the news that Mr Rojo's predecessor, Mariano Rubio, could face corruption charges more serious than previously thought, with a potential jail term of up to 24 years.

The additional charges announced by the public prosecutor investigating Mr Rubio, 62, raised new questions as to how Mr Rojo, as deputy governor, remained in the dark over the activities of his boss, who was governor for two four-year terms until 1992.

Mr Rojo took over as governor that year after Mr Rubio was linked with a failed bank, Ibercorp, whose directors were penalised for improper practices.

Mr Rubio, named both times by Prime Minister Felipe Gonzalez, evaded investigation at the time but backed off an expected third term. The scandal resurfaced this year when newspapers uncovered details of a secret bank account for equity trading allegedly held by Mr Rubio and handled by leading stockbroker Manuel de la Concha, a former chairman of the Madrid stock exchange. Mr de la Concha now also faces charges of fraud and insider trading.

A new law granting the Bank of Spain autonomy from the finance ministry lengthened the governor's term to six years, but made it non-renewable. As a result of the Rubio scandal, the law also places restrictions on central bank officials, barring them from holding equity investments.

Mr Rojo is widely seen as an honest man but he has been criticised for failing to detect Mr Rubio's alleged illegal activities, which the prosecutor yesterday said included bribery, falsifying documents, illegal use of privileged information, illegal trading and 'trafficking in influence'. Previously, Mr Rubio, who spent two weeks in preventive detention in May, had been accused only of tax fraud.

Mr Rojo admitted he had once invested in Ibercorp but declared his gains to the tax authorities.

He was also criticised for the Bank of Spain's delay in recognising the gravity of the losses run up by Banesto bank. The central bank took control of Banesto last December - it has since been bought by Banco Santander - but Mr Rojo admitted the central bank had known of its problems for more than a year.

A secret report on Banesto's then chairman, Mario Conde, carried out in 1992 by Kroll Associates, the investigative firm based in the US and paid for by the government's reserved or secret funds, said: 'It will be difficult or impossible to sustain the (Banesto) balance during 1993, depending on the Bank of Spain's attitude.'

The government was widely perceived to have ordered the report to block Mr Conde's political ambitions. Immediately after the report was completed, Mr Conde abruptly stopped making highly political statements which had suggested he could become a serious centre-right threat to Mr Gonzalez's fading Socialists.

Mr Conde also accused Mr Rojo and the Bank of Spain of political motives in taking over Banesto last December, when its assets were estimated to have been overvalued by about pounds 3bn. Mr Conde insisted his restructuring plans were adequate.

Arts and Entertainment
Characters in the new series are based on real people, say its creators, unlike Arya and Clegane the Dog in ‘Game of Thrones’
tv'The Last Kingdom' embraces politics, religion, warfare, courage, love and loyalty, say creators
Sport
Sergio Romero saves Wesley Sneijder's penalty
world cup 2014But after defeating the Dutch, Lionel Messi and Argentina will walk out at the Maracana on Sunday as underdogs against Germany
Sport
Scoreboard at the end of the semi-final World Cup match between Brazil and Germany at The Mineirao Stadium in Belo Horizonte
Sport
'Saddest man in Brazil' takes defeat with good grace, handing replica trophy to German fans
PROMOTED VIDEO
News
peopleThe Game of Thrones author said speculation about his health and death was 'offensive'
Arts and Entertainment
Martin Freeman and Lauren O'Neil in Jamie Lloyd's Richard III
theatreReview: The monarch's malign magnetism and diabolic effrontery aren’t felt
News
Glamour magazine hosts a yoga class with Yogalosophy author Mandy Ingber on June 10, 2013 in New York City.
newsFather Padraig O'Baoill said the exercise was 'unsavoury' in a weekly parish newsletter
Extras
indybest
News
people'She is unstoppable', says Jean Paul Gaultier at Paris show
Sport
Alexis Sanchez and apparently his barber Carlos Moles in Barcelona today
football
Arts and Entertainment
Miley Cyrus has her magic LSD brain stolen in this crazy video produced with The Flaming Lips
video
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
In his own words: Oscar Wilde in 1882
theatreNew play by the Oscar Wilde's grandson reveals what the Irish wit said at his trials - and what they reveal about the man
News
people
Arts and Entertainment
Unless films such as Guardians of the Galaxy, pictured, can buck the trend, this summer could be the first in 13 years that not a single Hollywood blockbuster takes $300m
filmWith US films earning record-breaking amounts at the Chinese box office, Hollywood is more than happy to take its lead from its new-found Asian audience
News
The garage was up for sale in Canning Place Mews for £500,000
newsGarage for sale for £500,000
Life and Style
tech
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Associate CXL Consultant

£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

Associate CXL Consultant

£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...

Financial Planning Manager, Qual Accountant, £380

£300 - £380 per day: Orgtel: Financial Planning Manager, Banking , London, £30...

Business Analyst - Financial Services, Trading Systems, Agile

£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fina...

Day In a Page

The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice
Hollywood targets Asian audiences as US films enjoy record-breaking run at Chinese box office

Hollywood targets Asian audiences

The world's second biggest movie market is fast becoming the Hollywood studios' most crucial
Grindr founder Joel Simkhai: 'I've found love on my dating app - and my mum keeps trying to hook me up!'

Grindr founder Joel Simkhai: 'I've found love on my dating app'

Five years on from its launch and Grindr is the world's most popular dating app for gay men. Its founder Joel Simkhai answers his critics, describes his isolation as a child
Autocorrect has its uses but it can go rogue with embarrassing results - so is it time to ditch it?

Is it time to ditch autocorrect?

Matthew J X Malady persuaded friends to message manually instead, but failed to factor in fat fingers and drunk texting
10 best girls' summer dresses

Frock chick: 10 best girls' summer dresses

Get them ready for the holidays with these cool and pretty options 
Westminster’s dark secret: Adultery, homosexuality, sadomasochism and abuse of children were all seemingly lumped together

Westminster’s dark secret

Adultery, homosexuality, sadomasochism and abuse of children were all seemingly lumped together
A History of the First World War in 100 Moments: Dulce et decorum est - a life cut short for a poet whose work achieved immortality

A History of the First World War in 100 Moments

Dulce et decorum est: a life cut short for a poet whose work achieved immortality
Google tells popular music website to censor album cover art in 'sexually explicit content' ban

Naked censorship?

The strange case of Google, the music website and the nudity take-down requests
Howzat! 8 best cricket bats

Howzat! 8 best cricket bats

As England take on India at Trent Bridge, here is our pick of the high-performing bats to help you up your run-count this summer 
Brazil vs Germany World Cup 2014 comment: David Luiz falls from leader figure to symbol of national humiliation

David Luiz falls from leader figure to symbol of national humiliation

Captain appears to give up as shocking 7-1 World Cup semi-final defeat threatens ramifications in Brazil