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Tuesday, October 07, 2008

A BUNCH OF BANKERS

Jersey

1. In the UK, in 1999, Channel Islands regulators investigated allegations that more than 50 billion pounds of Russian currency reserves were secretly moved to Jersey.

(Jersey investigates Russian 'billions' Business guardian.co.uk / The Economy: Scandal at the bank )

Jersey's Attorney General Michael Birt, who was listed as a founder-partner of Financial Management Company (Fimaco), the company to which the reserves were transferred, said he had no recollection of the company.

Russia's former central banker Sergei Dubinin and deputy Sergei Aleksashenko confirmed to President Boris Yeltsin that cash reserves were transferred to Fimaco between 1993 and 1997.

Trichet

2. Jean-Claude Trichet is the president of the European Central Bank.

During the 1980s, the then state-owned Credit Lyonnais "lent money exuberantly, plunged into the red when many loans turned bad, and then cooked the books to disguise its losses." (Jean-Claude Trichet: Banker in a bind)

Trichet, a top Treasury official at the time, was accused of being involved in producing those misleading accounts.

Cleaning up the bank cost the French taxpayer as much as 30bn euros

3. Jeffrey Winters, an associate professor at Northwestern University, said his research suggested World Bank corruption wasted about $100 billion and when other multilateral development banks are included, the total rises to about $200 billion. (World Bank corruption may exceed $100 billion)

4. In 2002, an Indonesian court found the governor of the Bank Indonesia guilty of stealing 904 billion rupiah of Bank Indonesia funds in 1999 that were meant to be given to a local bank, Bank Bali.

Bank Bali, like many Indonesian banks, went bust in 1997.

Prosecutors stated during the trial that the money was used by the then president, BJ Habibie.


Photo of Abramovich by Mark Freeman

5. The Chelsea football club owner Roman Abramovich was a suspect in the case of the possible misuse of a $4.8 billion loan from the IMF to Russia. (Did the $4.8 billion loan from the IMF to Russia finance the Chelsea Football Club...)

Abramovich and his Runicom trading group were named in documents from a Swiss inquiry into what happened to money meant to help Russia.

The Swiss believed that Abramovich was one of the controllers of a web of slush funds.

US Federal prosecutors allege that the Bank of New York was linked to $7 billion in Russian money, some from criminal activities.

Some allegations have said the Bank of New York case included funds lent to Russia by the IMF.

Laurent Kasper-Ansermet, the investigating magistrate who launched the Swiss investigation, was left bleeding and unconscious in an attack in St Petersburg during a visit to Russia.

~~~

Central Bank Corruption Insider Trading and Scandals

Classic Financial and Corporate Scandals

Gambling on Derivatives: Hedging Risk or Courting Disaster?

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