RUSSIA: Second largest bank admits it is broke and needs bailout ~ 1/29/2009

peaceandlove · 02-03-2009, 12:11 AM

January 29, 2009

Global banks join clamour for bailouts

Jenny Booth

Source: http://www.realityzone.com/currentperiod.html

The crisis facing banks was sharply underlined today when Russia's second-biggest bank admitted in Davos that it was seeking a bailout and Germany indicated that it was coming round to the idea of "bad banks" to hive off toxic debt.

Russian banks have been badly hit by the global economic crisis, which has hammered the country’s stock, bond and currency markets. A number of its smaller banks have already failed, and some of its biggest lenders may need capital injections.

Speaking at the World Economic Forum in Switzerland, Andrei Kostin, the chief executive of VTB, Russia's second-largest bank, said that the lender may issue preference shares this year as part of a 200 billion rouble (£4 billion, $5.7 billion) state recapitalisation.

“There is no final decision yet on the size of the capitalisation,” Mr Kostin said. “We think that 200 billion roubles would be the right decision.

Article continues here: http://business.timesonline.co.uk/to...cle5610807.ece

02-03-2009, 12:11 AM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	RUSSIA: Second largest bank admits it is broke and needs bailout ~ 1/29/2009 January 29, 2009 Global banks join clamour for bailouts Jenny Booth Source: http://www.realityzone.com/currentperiod.html The crisis facing banks was sharply underlined today when Russia's second-biggest bank admitted in Davos that it was seeking a bailout and Germany indicated that it was coming round to the idea of "bad banks" to hive off toxic debt. Russian banks have been badly hit by the global economic crisis, which has hammered the country’s stock, bond and currency markets. A number of its smaller banks have already failed, and some of its biggest lenders may need capital injections. Speaking at the World Economic Forum in Switzerland, Andrei Kostin, the chief executive of VTB, Russia's second-largest bank, said that the lender may issue preference shares this year as part of a 200 billion rouble (£4 billion, $5.7 billion) state recapitalisation. “There is no final decision yet on the size of the capitalisation,” Mr Kostin said. “We think that 200 billion roubles would be the right decision. Article continues here: http://business.timesonline.co.uk/to...cle5610807.ece