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Rodrigo de Rato y Figaredo (born 18 March 1949) is a Spanish politician who served in the
Council of Ministers A council is a group of people who come together to consult, deliberate, or make decisions. A council may function as a legislature, especially at a town, city or county/shire level, but most legislative bodies at the state/provincial or natio ...
from 1996 to 2004. He also served as the ninth managing director of the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glob ...
(IMF) from 2004 to 2007 and the president of
Bankia Bankia () was a Spanish financial services company that was formed in December 2010, consolidating the operations of seven regional savings banks, and was partially nationalized by the government of Spain in May 2012 due to the near collapse of ...
from 2010 to 2012. Rato was arrested on 16 April 2015 for alleged
fraud In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compensa ...
,
embezzlement Embezzlement is a crime that consists of withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a typ ...
and
money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictio ...
. His case was still awaiting trial a year later when his name appeared in the
Panama Papers The Panama Papers ( es, Papeles de Panamá) are 11.5 million leaked documents (or 2.6 terabytes of data) that were published beginning on April 3, 2016. The papers detail financial and attorney–client information for more than 214,488 ...
. Despite his prior assurances that he did not own companies in tax havens, apparently he used two offshore companies to avoid taxes on millions of euros kept overseas. It has been alleged that he owes taxes to both the Spanish and Panamanian governments. On 23 February 2017, Rato was found guilty of embezzlement and sentenced to 4½ years' imprisonment. In September 2018, the sentence was confirmed by the
Supreme Court of Spain The Supreme Court ('', TS'') is the highest court in the Kingdom of Spain. Originally established pursuant to Title V of the Constitution of 1812 to replace —in all matters that affected justice— the System of Councils, and currently regula ...
., and Rato entered prison on 25 October 2018.


Early life and education

Rodrigo de Rato was born in
Madrid Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is the second-largest city in the European Union (EU), and ...
, into a rich
textile Textile is an umbrella term that includes various fiber-based materials, including fibers, yarns, filaments, threads, different fabric types, etc. At first, the word "textiles" only referred to woven fabrics. However, weaving is not the ...
-owning family from
Asturias Asturias (, ; ast, Asturies ), officially the Principality of Asturias ( es, Principado de Asturias; ast, Principáu d'Asturies; Galician-Asturian: ''Principao d'Asturias''), is an autonomous community in northwest Spain. It is coextensive ...
. He is the great-grandson of politician Faustino Rodríguez-San Pedro y Díaz-Argüelles and the son of businessman Ramón Rato who was jailed in 1967 for tax evasion to Switzerland through his Banco Siero, and of Aurora Figaredo Sela. Both the Rato and the Figaredo sides of his family owned industries and nobility titles. Rato attended a
Jesuit , image = Ihs-logo.svg , image_size = 175px , caption = ChristogramOfficial seal of the Jesuits , abbreviation = SJ , nickname = Jesuits , formation = , founders = ...
school Our Lady of Remembrance College, Madrid before studying law in the
Complutense University The Complutense University of Madrid ( es, Universidad Complutense de Madrid; UCM, links=no, ''Universidad de Madrid'', ''Universidad Central de Madrid''; la, Universitas Complutensis Matritensis, links=no) is a public research university loca ...
. In 1971 Rato went to
University of California, Berkeley The University of California, Berkeley (UC Berkeley, Berkeley, Cal, or California) is a public land-grant research university in Berkeley, California. Established in 1868 as the University of California, it is the state's first land-grant univ ...
, and received an
MBA A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as accounti ...
in 1974 from the
Haas School of Business The Walter A. Haas School of Business, also known as Berkeley Haas, is the business school of the University of California, Berkeley, a public research university in Berkeley, California. It was the first business school at a public university i ...
.


Career


Early beginnings

In 1975 Rato became involved in the family business, first in Fuensanta, an Asturian mineral water company, and then in two Madrid construction firms. He also became involved in expanding the ''Cadena Rato'' chain of radio stations. In 1977 Rato joined the newly formed Popular Alliance (AP), a party containing former ministers of Franco, founded by
Manuel Fraga Manuel Fraga Iribarne (; 23 November 1922 – 15 January 2012) was a Spanish professor and politician in Francoist Spain, who was also the founder of the People's Party. Fraga was Minister of Information and Tourism between 1962 and 1969, Ambas ...
, a close personal friend of his father. In December 1979 Rato was elected to the national executive committee, and became secretary of the AP economic commission. In February 1981 he became one of the party's five Secretaries-General, and was considered to be their economic expert. He supported tight controls on public spending, and an emphasis on the supply side of economics. In October 1982 he won election as an AP member of the
Congress of Deputies The Congress of Deputies ( es, link=no, Congreso de los Diputados, italic=unset) is the lower house of the Cortes Generales, Spain's legislative branch. The Congress meets in the Palace of the Parliament () in Madrid. It has 350 members elect ...
for
Cádiz Cádiz (, , ) is a city and port in southwestern Spain. It is the capital of the Province of Cádiz, one of eight that make up the autonomous community of Andalusia. Cádiz, one of the oldest continuously inhabited cities in Western Europe, ...
in spite of having no connection to this Andalucian town. He represented the area until 1989 and subsequently represented
Madrid Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is the second-largest city in the European Union (EU), and ...
from 1989 to 2000. The 1982 election handed a loss to the AP, and marked the beginning of the long rule of the
PSOE The Spanish Socialist Workers' Party ( es, Partido Socialista Obrero Español ; PSOE ) is a social-democraticThe PSOE is described as a social-democratic party by numerous sources: * * * * political party in Spain. The PSOE has been in gov ...
and
Felipe González Felipe González Márquez (; born 5 March 1942) is a Spanish lawyer, professor, and politician, who was the Secretary-General of the Spanish Socialist Workers' Party (PSOE) from 1974 to 1997, and the 3rd Prime Minister of Spain since the ...
. Until 1984 Rato was the Secretary of the parliamentary group. He then became their economic affairs spokesman where he impressed the party with his attacks on the PSOE's economic policies. He was seen to be on the
liberal Liberal or liberalism may refer to: Politics * a supporter of liberalism ** Liberalism by country * an adherent of a Liberal Party * Liberalism (international relations) * Sexually liberal feminism * Social liberalism Arts, entertainment and ...
wing of the party. When Fraga resigned from the leadership in December 1986 Rato backed Miguel Herrero y Rodríguez de Miñón who lost the leadership race to Antonio Hernández Mancha, but managed to keep his positions within the party. During these years he also continued his business career in Aguas de Fuensanta; having previously been the
CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especiall ...
of the company from 1978 to 1982, he served as chairman from 1985 to 1991. In June 1989 Fraga again became interim President after the generally acknowledged failure of the leadership of Hernández Mancha. The party became the slightly more inclusive People's Party (PP). Rato was given shared responsibility over the elections with Francisco Álvarez-Cascos Fernández, the new party Secretary General. He was a close supporter of
José María Aznar José María Alfredo Aznar López (; born 25 February 1953) is a Spanish politician who was the prime minister of Spain from 1996 to 2004. He led the People's Party (PP), the dominant centre-right political party in Spain. A member of the Fr ...
, who was voted as the new PP leader on 4 September. On 29 October, the PP lost the general election, though his role in the campaign gave him national prominence. Afterwards he was appointed party spokesman. On 2 April 1990 his father sold the family stake in ''Cadena Rato'' for 5 billion pesetas. In June 1991 he stopped being President of Fuensanta, but remained on the board until 1993. On 6 June that year the PP lost another general election to PSOE. In the 12th National Congress in January 1996 he was confirmed as one of the three vice secretaries of the party.


Minister of Economy and vice president

Then on 3 March 1996 the PP won the
general election A general election is a political voting election where generally all or most members of a given political body are chosen. These are usually held for a nation, state, or territory's primary legislative body, and are different from by-elections ( ...
. On 4 May Aznar became
Prime Minister of Spain The prime minister of Spain, officially president of the Government ( es, link=no, Presidente del Gobierno), is the head of government of Spain. The office was established in its current form by the Constitution of 1978 and it was first regula ...
, and on 6 May Rato became both second Vice President and Minister of Economy and Finance. On 12 March 2000 the PP won again, this time with an absolute majority. His ministries were reorganised, and he gave all his responsibilities to Cristóbal Montoro Romero who became Minister of Finance. In his second term he had to fend off various charges of incompatibility between his public office and his private business interests.


Managing Director of the IMF

Rato became the managing director of the
IMF The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
on 7 June 2004, taking over from
Anne Krueger Anne Osborn Krueger (; born February 12, 1934) is an American economist. She was the World Bank Chief Economist from 1982 to 1986, and the first deputy managing director of the International Monetary Fund (IMF) from 2001 to 2006. She is currently ...
, who had been acting as temporary Managing Director after
Horst Köhler Horst Köhler (; born 22 February 1943) is a German politician who served as President of Germany from 2004 to 2010. As the candidate of the two Christian Democratic sister parties, the CDU (of which he is a member) and the CSU, as well as the ...
, who at that time was nominated (and later elected)
President of Germany The president of Germany, officially the Federal President of the Federal Republic of Germany (german: link=no, Bundespräsident der Bundesrepublik Deutschland),The official title within Germany is ', with ' being added in international corres ...
, resigned the post 4 March 2004. In June 2007 Rato announced that he would resign from his post the following October, citing personal reasons. On 28 September 2007, the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glob ...
's 24 executive directors elected former French Minister for Economics, Finance, and Industry,
Dominique Strauss-Kahn Dominique Gaston André Strauss-Kahn (; born 25 April 1949), also known as DSK, is a French economist and politician who served as the tenth managing director of the International Monetary Fund (IMF), and was a member of the French Socialist P ...
, over former Czech Prime Minister
Josef Tošovský Josef Tošovský () (born 28 September 1950) is a Czech economist and former governor of Czech National Bank (from 1993 to 2000). From 17 December 1997 to 22 July 1998 he was the prime minister of the Czech Republic in a caretaker government. C ...
, to be the new managing director in succession to Rato.


Career in the private sector


Bankia

Rato assumed the presidency of
Caja Madrid Caja Madrid, formally the Caja de Ahorros y Monte de Piedad de Madrid, headquartered in Madrid,Inicio
." C ...
in 2010, a public
savings bank A savings bank is a financial institution whose primary purpose is accepting savings deposits and paying interest on those deposits. They originated in Europe during the 18th century with the aim of providing access to savings products to all ...
based in the
Community of Madrid The Community of Madrid (; es, Comunidad de Madrid ) is one of the seventeen autonomous communities of Spain. It is located in the centre of the Iberian Peninsula, and of the Central Plateau (''Meseta Central''). Its capital and largest munici ...
, and after a merger with other six saving banks he assumed the presidency of the new group now called
Bankia Bankia () was a Spanish financial services company that was formed in December 2010, consolidating the operations of seven regional savings banks, and was partially nationalized by the government of Spain in May 2012 due to the near collapse of ...
. On 7 May 2012, he resigned amid growing concerns about the solvency of the bank. Although the core capital ratio was 10,4%, the Popular Party Government planned to lend about 8 billion euro to the bank to increase its solvency, as was done before throughout Europe (e.g.
ING Ing, ING or ing may refer to: Art and media * '' ...ing'', a 2003 Korean film * i.n.g, a Taiwanese girl group * The Ing, a race of dark creatures in the 2004 video game '' Metroid Prime 2: Echoes'' * "Ing", the first song on The Roches' 1992 ...
and
Northern Rock Northern Rock, formerly the Northern Rock Building Society, was a British bank. Based at Regent Centre in Newcastle upon Tyne, United Kingdom, Northern Rock was originally a building society. It demutualisation, demutualised and became North ...
crisis). Due to his political ties to the governing PP, which decided to inject the funds, Rato resigned. He had his salary cut from €2.3 million to €600,000 annually in 2011 due to new laws for rescued banks.


Other activities

*
International Airlines Group International Consolidated Airlines Group S.A., trading as International Airlines Group and usually shortened to IAG, is an Anglo-Spanish multinational airline holding company with its registered office in Madrid, Spain, and its global head ...
(IAG), Member of the Board of Directors *
Mapfre Mapfre, S.A. (, officially typeset MAPFRE) is a Spanish multinational insurance company, based in Majadahonda, Madrid. The name comes from the old mutual origin of the company (''Mutualidad de la Agrupación de Propietarios de Fincas Rústicas ...
, Member of the Board of Directors (2010–2012)


Legal issues

On 4 July 2012, Rato, along with 30 other former members of the board of directors of Bankia, were charged with accounting irregularities. Bloomberg Businessweek listed Rato as the worst CEO in 2012. In 2011, Bankia had announced profits of €309 million; after Rato resigned, the figure was amended to €3 billion in losses. In October 2014, it became known that between 24 October 2010 to 28 November 2011, Rato made 519 purchases with a secret corporate credit card, spending a total of €99,041. Among these purchases he spent in one day were €3,547 in alcoholic beverages and €1,000 in shoes, along with 16 cash withdrawals of more than €1,000, most of them during the last months of his presidential term. After a hearing 17 October 2014, the Spanish High Court judge Fernando Andreu assigned civil responsibility for the credit card abuse to Rodrigo Rato and Miguel Blesa. Rato was ordered to pay a bond of €3 million, and was expelled from the People's Party (PP). The case went to court in 2016. On 23 February 2017, Rato was convicted and sentenced to four and a half years in prison. In 2020, the High Court acquitted Rato in a separate trial over falsifying accounts and other charges in the listing of Bankia when he was the bank’s chairman. It later granted him a semi-release which allowed him to serve the rest of his sentence in partial liberty.Jesús Aguado and Emma Pinedo (October 1, 2020)
Former IMF chief Rato to leave Spanish prison on semi-release from embezzlement sentence
''
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''.


References


External links


IMF biographyBiography by CIDOB
(in Spanish)
Rodrigo de Rato's Project Syndicate op/eds
{{DEFAULTSORT:Rato, Rodrigo 1949 births Living people People from Madrid People's Party (Spain) politicians Complutense University of Madrid alumni Economy and finance ministers of Spain Managing directors of the International Monetary Fund Haas School of Business alumni Members of the 2nd Congress of Deputies (Spain) Members of the 3rd Congress of Deputies (Spain) Members of the 4th Congress of Deputies (Spain) Members of the 5th Congress of Deputies (Spain) Members of the 6th Congress of Deputies (Spain) Members of the 7th Congress of Deputies (Spain) Members of the 8th Congress of Deputies (Spain) Deputy Prime Ministers of Spain People named in the Panama Papers Politicians convicted of embezzlement Spanish politicians convicted of crimes Spanish prisoners and detainees Spanish officials of the United Nations Directors of Bankia