Yukos and the Banks
Politics are not my normal terrain, and to be clear both Yukos and the Banks are about politics.
For ever and a day the Investment Banking analysts have been telling us that the Yukos affair is about humbling Khordokhovsky and not about taking Yukos to bankruptcy. Well its effectively bankrupt and the only way that it's not going to be bankrupt is politics. That way the portfolio investors can maintain their navel gazing shortsightedness and pretend they did not lose too badly.
The banking crisis is an oxymoron - to have a crisis you need a banking sector. Anyhow it too has been driven by politics. I have on my desk (somewhere) the banking blacklist. It comprises 38 banks including 2 of the 4 leading non-state owned banks. That I can get my hands on it somewhat goes to prove that its meant to be seen. And causing a run on the banks who you can't control is a pretty good way to get them to come in to line.
It might amuse you to know that there was a queue outside Citibank's branch yesterday. So strong is the public's faith in private banks.
The Russian menatlity is stronly zero-sum-game; and it is now being played out in front of our eyes for all to see. I am afraid to say that Putin's government has gone from partial reform to failed authoritarianism.
08 July 2004
Yukos and the Banks
Politics are not my normal terrain, and to be clear both Yukos and the Banks are about politics.
For ever and a day the Investment Banking analysts have been telling us that the Yukos affair is about humbling Khordokhovsky and not about taking Yukos to bankruptcy. Well its effectively bankrupt and the only way that it's not going to be bankrupt is politics. That way the portfolio investors can maintain their navel gazing shortsightedness and pretend they did not lose too badly.
The banking crisis is an oxymoron - to have a crisis you need a banking sector. Anyhow it too has been driven by politics. I have on my desk (somewhere) the banking blacklist. It comprises 38 banks including 2 of the 4 leading non-state owned banks. That I can get my hands on it somewhat goes to prove that its meant to be seen. And causing a run on the banks who you can't control is a pretty good way to get them to come in to line.
It might amuse you to know that there was a queue outside Citibank's branch yesterday. So strong is the public's faith in private banks.
The Russian menatlity is stronly zero-sum-game; and it is now being played out in front of our eyes for all to see. I am afraid to say that Putin's government has gone from partial reform to failed authoritarianism.
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