Posted on 12/22/2014 11:32:55 AM PST by Lorianne
Russian mid-sized lender Trust Bank is to receive up to 30 billion rubles ($530 million) from the central bank to stop it going bankrupt in the first bailout of its kind during the current rouble crisis.
The central bank also said its Deposit Insurance Agency, responsible for managing crisis-hit lenders, would take over interim supervision of Trust Bank as of Monday.
The measures "will make it possible for Trust to continue smooth payments operations. All the bank's clients, including depositors, can use its services as usual", the central bank said in a statement.
Trust, which hired actor Bruce Willis as its face for a series of advertisements, is Russia's 32nd largest lender by assets, according to Interfax data. It is also 15th biggest by private personal accounts, including deposits.
As of Dec. 1, Trust held 145 billion rubles ($2.63 billion) in private personal deposits, according to its accounts. Last week, the Finance Ministry proposed doubling deposit insurance to 1.4 million rubles ($25,000) if a bank fails.
(Excerpt) Read more at reuters.com ...
Too Big To Fail.
Film at 11.
Putin’s whole economy is going to come undone. He’s not too bright when it comes to economics, but he sure knows how to fool the masses.
Uhhh....the US economy is never going to recover from our Great Recession. Let’s see how this plays out. The global economy is in unchartered territory.
“....the US economy is never going to recover from our Great Recession. Let’s see how this plays out. The global economy is in unchartered territory.”
It’s dollar denominated debt.
Putin will have to print rubles to buy dollars to fund this bailout.
That is good for America and very bad for Russia.
The more the Russian people starve, the more they love their dictator.
The last guy in Russian government who understood economy was Alexei Kudrin. He was appreciated in specialist circles and was selected as “Finance Minister of the Year 2010” by the Euromoney magazine. He was fired in 2011 after serving from year 2000.
He is saying Russian economy is f***d - http://www.reuters.com/article/2014/12/22/us-russia-crisis-idUSKBN0K011920141222
They're in a vice. They're deep in debt. Their currency is dropping making paying off the debt for their government and for the private sector loans all the more difficult if not impossible. They cannot loan money to stimulate growth to Russian citizens because of the high interest rates at 17%. The price of oil is going to go down even more. They won't be able to meet their budget targets based on the price of oil. Putin's gotten them into a war of no benefit with a peaceful neighbors. He says he's still going to modernize their military, which is not going to help their overall economy or their country's capability. He's damaged the Russian name and brand to the point that people don't want to invest in Russian and wealthy Russians are moving their money out of the country. He's going to have to pay the pensions of everyone in Crimea even though those people never paid Russian taxes. He spent $50 billion of government money on the Sochi Olympics, and no one but rich Russians are going to go there. The only people who made money off of Sochi are the cronies of Putin. All and all, he's botched everything and really done nothing but make an ass of himself with idiotic Russian chauvinism and self-evidently stupid paranoia.
Dictator disease. Eventually a dictator gets rid of all the experts and will be solely surrounded by yes-men. This has happened in Russia.
Nice talk is not going to work with them. I don’t subscribe to this cornered-racoon-give-it-everything theory. I know that after receivingca first punch to the chin these folks, who Putin takes after, will become polite.
Good summation.
Probably dismissed the possibility of an oil price drop which is most likely a coordinated action against him anyway.
No more cash for fun.
Start a war against, mmm, The Baltics? The EU? Divert attention?
Good luck.
I think yesterday’s good economic news shows the US economy is going to recover. I don’t credit Obama in any way, but I also don’t think we must ignore the success of our private enterprise system, despite Obama, when it does well.
At one time I thought that Putin was smarter than that, guess I was wrong.
America has exported our very own jobs.
We are now nearly 18 trillion in debt. That continues to grow, in both size and the speed at which that debt is climbing.
Both political parties have sold out American jobs. We need to be for jobs.
Right here in America.
Either the democrats or the Republicans will eventually wake up and say America needs to grow American employment.
If the Republicans don’t rise to the challenge, eventually the democrats will, and the GOP may then be finished in America.
GOP get with it. Now.
Bring back American jobs. Stop sending jobs to China, and to other countries.
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