Russia rescues Bank of Moscow in record bail-out

Gerald · 07-02-11, 05:05 AM

Russia's fifth largest bank, Bank of Moscow, has been given the biggest bail-out in Russian history.

The $14bn rescue came after another bank, VTB, gained control through a hostile bid, only to uncover bad loans valued at $9bn - a third of the bank's assets.

Bank of Moscow's former head, Andrei Borodin, has fled the country, and a warrant has been issued for his arrest.

The bank was used by ex-Moscow Mayor Yuri Luzhkov to fund property projects.
'Fraudulent lending'

Mr Luzhkov was sacked by Russian President Dmitry Medvedev last year.

http://www.bbc.co.uk/news/business-13999509

Note: 1 July 2011 Last updated at 22:04 GMT

07-02-11, 05:05 AM	#1
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	Russia rescues Bank of Moscow in record bail-out Russia's fifth largest bank, Bank of Moscow, has been given the biggest bail-out in Russian history. The $14bn rescue came after another bank, VTB, gained control through a hostile bid, only to uncover bad loans valued at $9bn - a third of the bank's assets. Bank of Moscow's former head, Andrei Borodin, has fled the country, and a warrant has been issued for his arrest. The bank was used by ex-Moscow Mayor Yuri Luzhkov to fund property projects. 'Fraudulent lending' Mr Luzhkov was sacked by Russian President Dmitry Medvedev last year. http://www.bbc.co.uk/news/business-13999509 Note: 1 July 2011 Last updated at 22:04 GMT __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie