Wednesday April 23, 2014 Search
Weather | Athens
23o C
15o 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 Germanys 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 Germanys 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 Cypruss 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 banks 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)  
Greece sees 2013 primary budget surplus at 1.5 bln euros, says deputy finance minister
Greek debt swells again as Samaras looks to creditors for relief
Corfu property market puts up resistance to pressures
Major tourism promotion at travel fair in Latin America
Woman dies after falling off regional ity building
Police in the district of Peristeri, in western Athens, were investigating the circumstances surrounding the death of a woman who fell off the roof of an Attica regional authority building e...
Tunisian sought over employment scam
Police in Thessaloniki were seeking on Wednesday a Tunisian national over an alleged employment scam. The 59-year-old suspect is believed to have charged 102 people seeking employment over 6...
Inside News
BASKETBALL
Reds and Greens stay alive in Euroleague
Easter and home advantage worked wonders for Panathinaikos and Olympiakos who stayed alive in the Euroleague play-offs beating CSKA and Real Madrid respectively on Monday in Greece. Shak...
BASKETBALL
Greens lose badly as CSKA Moscow
Panathinaikos has a mountain to climb in order to reach the Final Four of the Euroleague after losing at CSKA Moscow on Friday for a second time in two days, only this time it was comprehens...
Inside Sports
COMMENTARY
Realitys other side
There is plenty of evidence pointing to the fact that the countrys real economy has hit rock bottom and is currently entering a phase of growth. Those who know the market well tend to suppo...
EDITORIAL
Enough barbarity
The events that took place on Santorini on Holy Saturday, when seven people were injured, including an American tourist who sustained life-threatening injuries, after a firecracker was throw...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Woman dies after falling off regional ity building
2. Greece sees 2013 primary budget surplus at 1.5 bln euros, says deputy finance minister
3. Greek debt swells again as Samaras looks to creditors for relief
4. Tunisian sought over employment scam
5. FBI seeks to identify victims of suspected US child molester who worked abroad, including Greece
6. Corfu property market puts up resistance to pressures
more news
Today
This Week
1. FBI seeks to identify victims of suspected US child molester who worked abroad, including Greece
2. Greek debt swells again as Samaras looks to creditors for relief
3. Tunisian sought over employment scam
4. Greece sees 2013 primary budget surplus at 1.5 bln euros, says deputy finance minister
5. Woman dies after falling off regional authority building
6. Three more arrests made on Santorini over Easter injuries [Update]
Today
This Week
1. Greece's market return mirrors return of tourists
2. Greece startup leaders say they cant break jobless cycle alone
3. Ground-breaking Good Friday mass signals thaw in Cyprus
4. Mayoral candidates clash over Athens mosque plans
5. Government looks to kick on
6. Greece offers to help find Turkish F-16 lost in 1996
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.