Saturday Jan 31, 2015 Search
Weather | Athens
16o C
13o 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)  
ECB’s Constancio signals Greek waiver may end if program dropped
Greece starts countdown to cash crunch saying bailout over
How Greece can run out of cash and what ECB’s Draghi can do
Varoufakis to meet French counterpart on Sunday
Tsipras says Greece to repay ECB, IMF, reach deal with euro area
Greek Prime Minister Alexis Tsipras sought to repair relations with the country’s creditors after a week- long selloff in bonds and stocks, triggered by his pledge to end the country’s bailo...
Greece seeks EU allies but Germany holds firm
Greeces radical new government on Saturday began a search for European allies forits anti-austerity agenda, but German Chancellor Angela Merkel once again ruled out debt relief for Athens. P...
Inside News
BASKETBALL
Panathinaikos preserves perfect home record
After yet another great performance at home, Panathinaikos defeated Galatasaray 86-77 in Athens on Friday to get to three wins in five games at the Euroleague top-16. The Greek champion shoo...
SOCCER
Gattuso: Unpaid OFI players couldn´t buy food
Former coach Gennaro Gattuso has lifted the lid on the plight of crisis-club OFI Crete which has been banned from playing in the Super League until it clears mounting debts with its staff. T...
Inside Sports
INTERVIEW
SYRIZA must come up with ‘pragmatic solutions,’ Schulz tells Kathimerini
“SYRIZA must realize that it is now the Greek government, not a party running an election campaign,” European Parliament President Martin Schulz, the first European official to visit Greece ...
COMMENTARY
Strange haste
The members of the new government must have a lot of confidence in themselves. Several days before announcing his program, Prime Minister Alexis Tsipras and his cabinet have opened up a mult...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. ECB’s Constancio signals Greek waiver may end if program dropped
2. Greece starts countdown to cash crunch saying bailout over
3. How Greece can run out of cash and what ECB’s Draghi can do
4. Tsipras says Greece to repay ECB, IMF, reach deal with euro area
5. Varoufakis to meet French counterpart on Sunday
6. No lending to Greek banks if no deal by end of February: ECB´s Liikanen
more news
Today
This Week
1. US to work closely with Greece and EU to resolve differences, says White House
2. Greek bank debt plummets as investors head for the exit
3. Merkel rejects debt writedown for Greece
4. Greek markets plunge as SYRIZA digs in on challenge to austerity
5. Greece seeks EU allies but Germany holds firm
6. No lending to Greek banks if no deal by end of February: ECB's Liikanen
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. SYRIZA's win will test institutions
5. Greek Elections 2015: The day after | LIVE
6. EU must accept that Greek debt relief is inevitable
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.