Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Cyprus probes Laiki bank deals with Commerzbank

Regulators in Cyprus are investigating transactions made by now-defunct Laiki Bank and arranged by Germany’s Commerzbank. The probe comes after a local lawmaker said the deals might have broken laws that bar a company from purchasing its own stock.

Cyprus House of Representatives member Irene Charalambides sent a letter, seen by Reuters, to the Cyprus Securities and Exchange Commission (CSEC) and to Germany’s financial watchdog Bafin, alleging that Commerzbank sold two structured products that acted as vehicles for Laiki to buy stock in itself and affiliates.

There are limits on companies buying their own stock without obtaining shareholder approval, to prevent them from surreptitiously inflating their own market price.

Charalambides is campaigning to help depositors in Laiki, once Cyprus’s second-largest bank, after they lost about 4.3

billion euros ($5.9 billion) last year when the bank collapsed and Cyprus required an international bailout.

"We have received a complaint, which the Cyprus Securities and Exchange Commission is investigating in cooperation with German regulators, to ascertain if there is a case or if any violation of laws occurred,» Demetra Kalogerou, president of the CSEC, told Reuters.

Kalogerou said the CSEC had sought information from Bafin because a German bank was mentioned in the complaint.

Bafin declined to comment.

Charalambides said Commerzbank should have questioned the commercial rationale of the transactions and that if regulators upheld her complaint, they should consider asking Commerzbank to refund Laiki depositors the amount they lost through the products, which she estimated at 50 million euros.

A spokeswoman for Commerzbank declined to give details about the investment securities, saying it would be a breach of client confidentiality to do so, and said the bank’s initial research showed there was «no indication of any wrongdoing by Commerzbank» related to them.

A copy of the letter from Charalambides, who is a member of the committee charged with examining Cypriot banks’ governance and lending practices, was also sent to Mario Draghi, the president of the European Central Bank. The ECB declined to comment.

The administrators for Laiki were not available for comment.

The collapse of Laiki under the weight of losses on investments in Greece is currently under investigation by regulators in Cyprus. [Reuters]

ekathimerini.com , Tuesday Jan 14, 2014 (16:31)  
Nicosia says reforms are bringing results
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Samaras pledges action after flash floods in Athens
Authorities began on Saturday assessing the damage done by flash floods in various parts of Athens a day earlier, with Prime Minister Antonis Samaras pledging that all those affected would b...
No court hearings for civil cases
Greek courts are to stop conducting hearings, which include witness questioning, for civil cases, according to plans drawn up by the Justice Ministry. Kathimerini understands that in a bid t...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
End of reason, end of humanity
The effects of a slew of new and increased taxes introduced since the start of the crisis were first observed in the wages of those still fortunate enough to have jobs, who saw their take-ho...
EDITORIAL
Banks need to step up
What has been leaked so far regarding the results of the stress tests on Greece’s lenders, which are due to be published on Sunday, appears positive. Greece needs a healthy, private banking ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Nicosia says reforms are bringing results
2. Samaras pledges action after flash floods in Athens
3. No court hearings for civil cases
4. Greece’s lenders seem adamant that gov’t must act on bailout commitments
5. Future of Attica trash set to become clearer
6. Policeman admits to murder of his cousin-in-law
more news
Today
This Week
1. End of reason, end of humanity
2. Banks need to step up
3. Nicosia says reforms are bringing results
4. Samaras pledges action after flash floods in Athens
5. No court hearings for civil cases
6. Two small boats sink at Lavrio port
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Stop moaning and get in the game
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.