Interesting banking news from Russia courtesy of a new listener.
An action in support of bank Rossiya to take place in Moscow
March 30, 6:15 UTC+4
The action is designed to voice support for the bank, which is creating a precedent in world economy
MOSCOW, March 30. /ITAR-TASS/. An action in support of bank Rossiya which has decided to work exclusively with the national currency will take place in Moscow on Sunday.
The Golden Symbol of Russian Rouble installation in front of the bank’s office in Perevedensky pereulok in Moscow will symbolize the rouble’s stability and its backing by the country’s gold reserves, the action’s organizers explained to Itar-Tass.
The action is designed to voice support for the Rossiya bank, which is creating a precedent and can make those who have initiated penalties against Russia to feel sorry about their decision.
The bank’s transition to using exclusively the rouble may prove the Russian currency’s viability and independence in world economy.
“Russia, at its present stage of development, should not be dependent on foreign currencies; its internal resources will make its own economy invulnerable to political wheeler dealers,” the action’s organizers said.
The Russian joint-stock bank, AB Rossiya, decided on Friday that it would work only with the national currency to protect its customers from dishonest actions by foreign financial institutions.
“In order to protect the bank’s customers from dishonest actions by foreign financial institutions AB Rossiya has decided to operate only in the domestic market and exclusively with the national currency of the Russian Federation – the rouble,” AB Rossiya said in a statement released on Friday.
“The bank has already notified some U.S. banks that it is closing its correspondence accounts. Similar notifications have been sent to other foreign financial institutions,” the bank said in its statement.
Despite changes in its work, AB Rossiya will continue meeting its commitments to clients and partners.
“The bank will fulfill its commitments on time and in full volume. The bank does not need financial support for its current operations, including from the state regulator,” AB Rossiya said. The Visa and MasterCard international payment systems stopped servicing the plastic cards of four Russian banks, including AB Rossiya, on March 21 because of their links to sanctioned Russian businessmen included in the United States black list.
The bank Rossiya’s decision to give up foreign currency and start working exclusively with the Russian rouble is a step forward towards converting the Russian economy and banking sector to national currency, Andrei Kostin, the VTB bank president, said in an interview with the Russia 24 TV news channel commenting the decision of bank Rossiya to operate only in the domestic market and exclusively with the Russian rouble.
“We have been moving towards wider use of the Russian rouble as the currency of settlement for a long time. The rouble became fully convertible quite a long time ago. Unfortunately, we have seen predominantly negative consequences of this step so far revealed in the outpour of capital from this country. The influx of foreign investments into Russia has been speculative and considerably destabilizing to our stock markets,” Kostin went on to say.
The VTB chief said that Russia should sell domestic products – from weapons to gas and oil – abroad for roubles and buy foreign goods also for roubles.
“Only then are we going to use the advantages of the rouble being a foreign currency in full measure,” Kostin said, adding that AB Rossiya would form a vital part of the Russian banking system and would closely cooperate with other Russian banks, which would also expand the rouble’s use in settlements.
“A new imperative motive has appeared for that now,” the VTB chief stressed.
“I believe that other credit institutions, enterprises and citizens will be interested in working with bank Rossiya,” Kostin said in conclusion.
Probably not, The Short, probably not!
Ditto J
impt Russian direction
A US federal court said Thursday silver investors failed to show that JPMorgan Chase & Co. (NYSE:JPM), violated federal antitrust and commodities laws by having distorted silver prices, and so the case against the country’s largest bank should be dismissed.
The class-action from investors who traded COMEX silver futures and options contracts between 2007 and 2010, claimed the bank would amass huge short positions that market conditions did not justify, and make “fake” late-day trades when market volume was thin, reports Reuters.
The US bank is not the only one that has been under scrutiny as of late. Authorities around the globe, already investigating the manipulation of benchmarks from interest rates to foreign exchange, have also been studying the gold market for signs of wrongdoing.
Deutsche Bank, Germany’s largest lender, said in January it would withdraw from the panels setting the gold and silver fixings. German financial markets regulator Bafin interviewed the bank’s employees as part of a probe into the potential manipulation of gold and silver prices. Britain’s Financial Conduct Authority is also scrutinizing how prices are calculated
Wonder how longs its going to take people to figure out the banks own the courts too?
Many thanks Ben
B, Could you be more precise in your language.
Your statement to me appears to be more a pleading to the court than a ruling by the court. However, using the word “said” is ambiguous, because if the court “said” that, the case would have been dismissed.
I read the same article,,,,,AND I think it said…………..
Failed to prove………therefore , the claim was dismissed……..
In any case , the manipulation will continue, with the help of the courts, just like the action against the Banks……………THE COURT, HAS DECIDED TO BE WITH THE CONS,
the JUSTICE , COURTS AND CONGRESS ARE ALL TOGETHER ON ALL THESE CASES…, IMHO
The article was from mining news I think, but you make me ask, what word other than “said” could have been used?
concluded and determined ….
As I understand it Professor, the case was not dismissed.
CFS. are you still in France?………any good news, on the bankers and the potential QE
great post………….MSN, will not cover this story….just another great contribution to the sight…………thanks……..