{"id":25876,"date":"2017-09-20T11:52:06","date_gmt":"2017-09-20T16:52:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=25876"},"modified":"2017-09-20T11:52:06","modified_gmt":"2017-09-20T16:52:06","slug":"russian-depositors-on-edge-after-second-major-bank-fails-in-under-a-month","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=25876","title":{"rendered":"Russian Depositors On Edge After Second Major Bank Fails In Under A Month"},"content":{"rendered":"

Russian Depositors On Edge After Second Major Bank Fails In Under A Month<\/a><\/h3>\n
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If once is happenstance, twice is coincidence, and three times is a full-blown collapse in the financial system, then Russia may be getting close.<\/p>\n

Just three weeks after Russia bailed out its largest and very politically connected private bank<\/a>, Otkritie, after an unexpectedly acute bank run resulted in the bank’s near-collapse, already nervous Russian depositors shifted their attention to another domestic lender, and earlier today Russia\u2019s B&N Bank, the country\u2019s 12th biggest lender by assets, also sought a bailout from the central bank<\/strong>. While it is unclear how much this bailout would cost Russian taxpayers, when the central bank took over Otkritie last month, it said it might need up to $6.9 billion, the biggest ever bailout in the country.<\/strong><\/p>\n

B&N Bank, which is controlled by Russian oligarch Mikhail Gutseriev and was not on the central bank\u2019s list of systemically important lenders, said it had under-estimated the problems within the banks it had bought during an expansion drive<\/strong>. \u201cOur objective is, with the support of the central bank … to conduct an effective financial rehabilitation of the bank,\u201d said Mikail Shishkhanov, who was named as chairman of B&N Bank, whose assets account for 2 percent of the Russian banking system, according to ratings agency Fitch.<\/strong><\/p>\n

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\nMikhail Gutseriev <\/em>
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Some background on the now defunct bank: B&N Bank, founded in 1993, is [or rather was] part of a sprawling conglomerate controlled by energy tycoon and billionaire Mikhail Gutseriev – said to be worth over $6 billion – that includes oil firms, a property development portfolio and an electronics retailer.<\/p>\n

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The bank embarked on an expansion drive after 2010, buying smaller lenders including Moskomprivatbank, Rost Bank, SKA-Bank before completing its biggest deal in 2016, a merger with MDM Bank, one of Russia\u2019s largest lenders.<\/p>\n

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…click on the above link to read the rest of the article…<\/p>\n

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Russian Depositors On Edge After Second Major Bank Fails In Under A Month If once is happenstance, twice is coincidence, and three times is a full-blown collapse in the financial system, then Russia may be getting close. Just three weeks after Russia bailed out its largest and very politically connected private bank, Otkritie, after an […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[16072,52,3825,16071,694,4318],"class_list":["post-25876","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bn-bank","tag-bank","tag-bank-failure","tag-otkritie","tag-russia","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25876"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25876\/revisions"}],"predecessor-version":[{"id":25877,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25876\/revisions\/25877"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}