Subordinate Bonds of Banco Popular and other toxic investments. What should be considered?

As in the case of the sale of preferred shares, and other products sold by banks to their customers, today we would like to speak about another toxic product, marketed by a Spanish bank: Mandatory Subordinate Bonds Convertible into Banco Popular Shares (BO POPULAR CAPITAL).

These bonds issued by Banco Popular, are an extremely complex investment product, which has been especially harmful to customers who acquired them from Banco Popular. They were generally acquired in 2009, and in 2012 its duration was extended until last November of 2015, when it has been exchanged for shares of this bank. In fact, after reading the prospectus of the product it is very difficult to understand what it is about, even if the reader had some investment culture.

As in the rest of selling toxic banking products, the people affected can legally claim for the nullity of the contract or alternatively compensation for damages in cases where the Bank did not inform the investors properly, and sufficiently in advance about the product – investment, the product features, risks, possible negative and positive consequences, etc.

If you have been affected by these Bonds of Banco Popular or any other investment of this type, you should know that for the purposes of determining what your legal possibilities of claiming successfully are, it should be considered and documented:

.- The information and documentation provided by the Bank on the product.

.-It is essential to check whether this information given by the bank, was delivered in good time and in advance, before contracting the investment.

.-It should be checked if the Bank conducted a convenience and aptitude test to the

 Investor, and on what terms it was made.

.-It is important to determine the knowledge and experience of the consumer-investor in investments, determine what sort of products have been contracted previously.


There are many court cases regarding these bonds of Banco Popular, the vast majority of it ruling in favor of the investors, as the Judgment 295/2015 of the Provincial Court of Palma de Mallorca, Court Decision 195/2015 of Section number 12 of the Court Provincial de Madrid, etc.

If you are affected by any “toxic” investment recommended by your bank, if you have problems with your investments, preferred shares, subordinated bonds, etc., please contact our office, we will make a preliminary study of your matter, without any obligation or cost, and inform you about the possibilities of claiming, risks, etc.

Therefore, if you bought Mandatory Subordinate Bonds Convertible into Banco Popular Shares (BO POPULAR CAPITAL) or any other toxic product investment, please contact us.

The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.


Carlos Baos (Lawyer)

Spanish Law firm solicitor attorney barrister.

Alicante, Denia, Costa Blanca Marina Alta

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