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Bulgaria to allow its fourth-biggest bank to collapse
CNBC/Reuters ^ | 11 July 2014

Posted on 07/13/2014 9:52:24 AM PDT by Lorianne

Bulgaria is to allow its fourth-biggest lender to collapse and will hive off its healthy activities into a separate bank as it moves to clear up the mess from the country's worst financial scandal since the 1990s.

The central bank said it was removing Corporate Commercial Bank's (Corpbank) license and alerting prosecutors to the possibility that its main shareholder stole money from the bank just before the central bank took over its operations.

The scandal broke last month when Corpbank clients unnerved by media reports accusing top shareholder Tsvetan Vassilev of shady business deals dashed to withdraw their savings.

The bank run spread quickly to another lender and saw Sofia announce a protective $2.3 billion credit line, a reminder that parts of Europe's financial system are still far from secure despite progress from the worst days of the financial crisis.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: eu

1 posted on 07/13/2014 9:52:24 AM PDT by Lorianne
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To: Lorianne
Not “too big to fail”

I predict that the temporary problems and pain caused by “letting” a crony capitalist bank fail, will be passed and forgotten within 18 months or less.

Whereas we lucky working Americans, will be paying millions (billions) of dollars to our bank presidents and Wall Street investors for decades to come.

Oldplayer

2 posted on 07/13/2014 10:25:53 AM PDT by oldplayer
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To: Lorianne; Resettozero

Swan, swan, hummingbird...
;)


3 posted on 07/13/2014 11:02:47 AM PDT by VRW Conspirator (Global Warming is caused by illegal immigrants!)
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To: VRW Conspirator

8>)


4 posted on 07/13/2014 11:10:32 AM PDT by Resettozero
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To: Lorianne

Good for Bulgaria.


5 posted on 07/13/2014 3:14:18 PM PDT by OldNewYork
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