Friday May 22, 2015 Search
Weather | Athens
14o C
09o 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)  
Slow ending to a good bourse week
Lagarde says much work left to be done on Greece deal
Greece to cut bank rescue fund managers´ pay by 40 percent
Schaeuble said to raise possibility of Greek parallel currency
Juncker, Tsipras eye Greece deal in early June
Prime Minister Alexis Tsipras and European Commission President Jean-Claude Juncker held talks in a very friendly and constructive climate on the sidelines of an EU leaders' meeting in Riga ...
EU to propose relocating 40,000 refugees from Italy, Greece
The European Commission is set to propose next week that 40,000 asylum seekers who have arrived by boat in Italy and Greece should be relocated across the continent in response to what it co...
Inside News
SOCCER
Greece escapes soccer suspension, FIFA happy with changes
FIFA says it is satisfied with changes made to sporting law in Greece, and has dropped a threat to suspend the country from international competition. In a letter to the government dated May...
SOCCER
Four-goal Panathinaikos thrashes Asteras away
Panathinaikos thrashed Asteras at Tripoli to gain an early advantage in the race for a spot in next season’s Champions League qualifiers, as the Super League play-offs got under way on Wedne...
Inside Sports
EDITORIAL
Consensus is key
The education bill that has been put forward by Greece’s leftist-led government has to be the subject of extensive public consultation. Even more importantly, it needs to be approved in Parl...
COMMENTARY
The other inequality: how the state spends our money
Growing inequality between rich and poor across the world has rightly become the focus of much investigation and analysis. The Organization for Economic Cooperation and Development underline...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Slow ending to a good bourse week
2. Juncker, Tsipras eye Greece deal in early June
3. Greece escapes soccer suspension, FIFA happy with changes
4. Lagarde says much work left to be done on Greece deal
5. EU to propose relocating 40,000 refugees from Italy, Greece
6. Greece to cut bank rescue fund managers´ pay by 40 percent
more news
Today
This Week
1. Merkel stamps out brief optimism on Greece after Tsipras talks
2. Tsipras to meet Juncker on second day of Riga summit
3. Lessons from Israel’s tech miracle
4. EOPYY struggles for funding, sees overdue debt rise
5. Banks will be asked to revise their restructuring plans
6. Greece sees reforms deal with lenders in next 10 days, spokesman says
Today
This Week
1. The Greek-German breakthrough that didn’t come
2. Phony dilemma
3. Greece came close to not paying IMF
4. Conspiracy madness
5. National self-awareness put to the test
6. Albanian demarche raises concerns about possible territorial claims over Greece
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.