Following up on Sergei Aleksashenko’s post from yesterday.
Borodin Didn’t Take That Much As Vedomosti has learned, the cost of rescuing Bank of Moscow has risen to 250 billion rubles (about $9 billion at the time) — even more than the total volume of loans issued to Andrei Borodin. To begin the financial rehabilitation, VTB will consolidate a 75% stake in the bank. The decision to rehabilitate Bank of Moscow has been made, Valery Miroshnikov, first deputy director general of the Deposit Insurance Agency (ASV, Russia’s state deposit insurer), announced yesterday evening (as quoted by Interfax): the ASV will issue it a loan whose amount exceeds the bank’s volume of troubled loans… Read in full
An astonishing story. Almost $9 billion from the state budget. So what exactly was VTB buying, then? How did it determine the price of "Bank of Moscow"? And most importantly: if things at Bank of Moscow are all of a sudden really this awful, then where has the Central Bank been all this time with its supervision? They have more than enough oversight tools. They can examine any bank’s operations at any moment as if with an X-ray. Except that in some cases, the X-ray somehow "breaks down." It seems to me the situation is perfectly clear: allocating $9 billion in budget money should be accompanied by putting all these people on this list on trial. A genuine mafia. Let’s see whether there is even a single resignation at the Central Bank. Update: A correct take here: rusanalit.livejournal.com/1173657.html
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