Skip to comments.Bulgaria to allow its fourth-biggest bank to collapse
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 ...
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.
Swan, swan, hummingbird...
Good for Bulgaria.