A comment by Andrei Borodin: That is how personal ambitions of a “banker of the decade” eat up shareholders’ funds. This is not the first case and obviously not the last.
VTB Capital’s international business may be earning five times less than what the shareholder is expecting. This may lead to a reduction in force and abandonment of low-income operations.
The expenditures of VTB Capital International have grown to 95 per cent of proceeds, which requires a reduction of business areas and personnel, Atanas Bostanjiyev, a department head, informed Yuri Solovyov, VTB first deputy chairman and VTB Capital board chairman, in a memo of 15 November, Bloomberg reports citing the memo. Mr Bostanjiyev, general director of VTB Capital plc., manages international business, a VTB officer says. According to data found on the VTB Capital website, the company has offices in London, Singapore, Dubai, Hong Kong, Sofia, Kiev, New York, Paris and Vienna. Continue reading