Santos, Mário Coutinho dosGaroupa, Nuno2026-05-122026-05-122026-05-04ba40fb24-76e3-40cc-b420-cf5c3f88eeb8http://hdl.handle.net/10400.14/57704In 2014, the Banco Espírito Santo (BES) conglomerate collapsed, marking the first bank resolution inspired by the European Union’s Bank Recovery and Resolution Directive (BRRD). Explanations for these events range from the aftermath of the 2008 financial meltdown to last-minute regulatory failures or capture. In this article, we offer empirical findings supporting a different perspective. The 2014 debacle stemmed from structural issues dating back to the Espírito Santo family’s reacquisition of BES in the early 1990s and the business strategy pursued over the subsequent two decades. While the financial meltdown post-2008 may have accelerated the events of 2014, it was not the root cause but rather an immediate trigger. Regulatory failures were evident but began well before the 2010s. This case carries broader implications for banking regulation in the European Union and beyond.engBanking collapseCapital ratioFinancial conglomerateGrowth strategyHubrisSupervisionresearch article10.1007/s40804-026-00363-2105037862583001755519500001