Portuguese bank bosses quit ahead of $5.4 billion rescue

Markets Associated Press

The troubles at Portugal's biggest bank by assets, state-owned Caixa Geral de Depositos, are deepening as its new president and six board members have quit less than three months after starting work.

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The resignations come amid a dispute over a law demanding that the bank's senior officials make public their income and personal assets. The departures are at a sensitive time as the government readies a 5.1 billion euro ($5.4 billion) rescue plan for the bank.

Caixa Geral de Depositos informed financial regulators of the developments Monday. The government says the rescue will proceed as planned next year.

Analysts say poor lending practices and unpaid loans are to blame for financial difficulties at Caixa Geral de Depositos and in the Portuguese banking sector generally.