rumafiozi_eng (rumafiozi_eng) wrote,

Former head of the Bank of Moscow waves goodbye to the staff

On April, 20, Bank of Moscow former president Andrey Borodin delivered a farewell address to the bank's employees. In his video address from London where he currently is, Borodin thanked his former colleagues for their work and explained that he decided to "withdraw in order not to lose the bank, clients, reputation, and the team." In addition, Borodin warned that after that the bank "would lose its independence and would no longer be able to develop as it pleased." He explained this new phase by a change in leadership of the Bank of Moscow as a result of VTB gaining control over the bank.

Subject of former Russian bankers fleeing to London was continued on a regulatory level. During his speech in the State Duma, the head of the Central Bank responded to comments from the members, who pointed to a number of Russian bankers, including Andrey Borodin, fleeing to London. Head of the Central Bank called this phenomenon "our most important problem". "Today, unfortunately, managers and owners of banks sometimes do unethical things, sometimes bankrupting their own banks because it is profitable. And most importantly, they do so because in most cases they are not punished for that in any way," said Sergei Ignatiev, Central Bank of Russia Chairman. He completed his speech on fugitive bankers by a traditional statement of a necessity to empower the Central Bank in terms of control over managers and owners of banks.

Market participants assume that the main message of the Central Bank Chairman and the main aim of his speech was to once again stress the lack of authority concerning control over managers and owners of banks. And also a lack concerning the regulator implementing reasoned judgments. Experts called Ignatiev’s statement another attempt to lobby the relevant amendments to the law. 


Tags: andrey borodin, the bank of moscow

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