It appears that the situation in Bank of Moscow continues to deteriorate. Today, the Russian media has reported that the Board of Directors of Bank of Moscow (appointed by VTB) was not able to sign off the 2010 annual report to be presented during the next shareholders meeting for their approval. The Bank was unable to agree its position with auditors on the financial reports, prepared in accordance with international standards. The Bank’s audit committee lost yet another member: chairman of the audit committee Konstantin Popov has resigned.
Can VTB manage this situation or is this further evidence that the sale of the Bank of Moscow shares to VTB was a commercial mistake? Today’s news may lead to a number of negative consequences, such as dissatisfied shareholders, loss of customers and investors and cause irreversible damage to the Bank’s reputation as a credible financial institution.
For the first time in the Bank’s history, its annual report is being prepared in such a way. The Bank’s last consolidated financial statements date back to November 2010.
You can read a recent news article on this issue here.