Save (from) banker Kostin!

Sergey Aleksashenko, Live Journal

Sergey Aleksashenko (former First Deputy Chairman of the Central Bank of Russia) in his blog writes that Andrey Kostin’s success in wasting VTB money exceeds all the reasonable limits.

Alekshashenko discusses all occasions, on which VTB already has successfully ‘beat out’ money from the state.

He argues that as a result of the proposed financial bailout all the population of Russia will have to pay their own money and this is all just so that no losses are created in the VTB balance and in order to save Kostin’s reputation.

Aleksashenko concludes that Kostin needs to be sacked, as he does not bring anything other than losses to the bank and its shareholders.

The rescuers from Neglinnaya


Vedomosti writes that VTB has finally achieved its goal and convinced the state to bail out Bank of Moscow.

Vedomosti also cite Andrey Borodin who stated: ‘It seems that, for VTB, and whoever controls the shares, which help them run Bank of Moscow, it is more expedient to seek state aid, with all the adverse publicity that it brings to both the Bank of Moscow and VTB itself, than to adopt the commercial solution of selling on the ‘suddenly risky’ Bank of Moscow shares, at the price they paid for them.’

Bank of Moscow is not as bad as VTB portrays it to be


This article in Izvestia discusses whether the provision of financial aid to Bank of Moscow by the state is really that necessary. Izvestia argues that the whole situation with Bank of Moscow brings a strong feeling of déjà vu. They provide the following example. In 2004 VTB (then Vneshtorgbank) took under control Guta Bank (nowadays the retail business of VTB – VTB 24). Izvestia says it is “interesting” that back then the Central Bank gave $700 million to rescue this credit institution and the same Mikhael Kuzovlev, who in 2011 took over the steering wheel of Bank of Moscow, was appointed Chairman of the Board of Directors of Guta Bank.

Putin will take care of Bank of Moscow tells its readers that the decision regarding the rescue of not so long ago stable bank will be made at the meeting of the Prime Minister Vladimir Putin.
This article cites Andrey Borodin as saying that he predicted that the destructive position of the bank during the negotiations with the companies who borrowed from the Bank of Moscow can cost a lot to the government and to the tax payers. refers to Sergey Aleksashenko (former First Deputy Chairman of the Central Bank of Russia) who reminds that people have already paid 2650 rubles each for the rescue of VTB 2 years ago. According to Sergey Aleksashenko each person will pay 1000 rubles more: ‘I don’t have any doubts that raider [VTB] will get its prey… However, following this, what should foreign investors think about Russian investment climate, whom the Russian President wants really much to see in Russia?’ concludes that investors understood everything very well about the climate: VTB eurobonds have dropped by few percent on Monday.