Accusations fly as Bank of Moscow gets record bailout

Havent seen this anywhere in the news over the last 2 days, even cnbc has nothing mentioned of it, amazing what is going on, and to think a quick fix by just another bailout.....simply amazing!
 
Quote from Visaria:

http://www.reuters.com/article/2011/07/01/vtb-bankofmoscow-idUSLDE7600ED20110701



* Bailout bigger than expected, largest ever in Russia

* Hostile bid, management ouster revealed hole in books

* Bonds rally, VTB stock underperforms Sberbank

* VTB alleges fraud, Kudrin calls for criminal probe
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So let me get this right....

VTB go hostile, take over BoM (:p ) only to discover the previous management have looted the place and are hiding out in London.

What happens next can only be described as a very American Bail Out straight out of the Benanke playbook- moral hazard be damned!What ever happened to due diligence?

All this is hugely worrying...the result of poor risk management MUST be bankruptcy, but in these fragile and overly sensitive economic times fear of any kind of contagion is sucking the financial world into an ever deeper sea of shit.

VTB should be allowed to fail and have their bones picked clean.I would expect at least a couple more Russian billionaires to be in jail before the year is out.That at least is a comfort.
 
"...found bad loans totalling $9 billion, or nearly a third of its assets. "




in an unrelated story: "None of 34 Russian billionaires is planning to return to their homeland"
 
How is it possible that this gets so little play in the press? This is the rough equivalent of Citibank being bailed out. And before you say they were at least remember it was at least covered in the press.
 
Quote from Swan Noir:

How is it possible that this gets so little play in the press? This is the rough equivalent of Citibank being bailed out. And before you say they were at least remember it was at least covered in the press.
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* because it's a bank in a non-English speaking country

* because (unfortunately) bailouts like this are the status quo
 
Good point.


Quote from SeekingAlpha2:

Major difference between Russians and Americans if anyone noticed

They want the people responsible for fraud in jail and will put them in jail sooner or later.

In US no one is in jail for bank fraud. I am even surprised Madoff is in jail for ponzi scheme.

If you ask me that is revealing about two mindsets
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