A group of hedge funds have accused the European Commission of encouraging and accelerating a run on failing Spanish bank Banco Popular after a series of leaks to the press.

The funds' lawyers have today applied to the European Court of Justice to have the resolution of Popular, which resulted in its sale to Santander for €1, annulled. The funds, which include Algebris Investments, Anchorage Capital and Ronit Capital, suffered hundreds of millions of euros in losses when their bondholdings were wiped out in the sale.