News, News, News:
Man bites dog!!!
Bankster is being prosecuted!!!
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The criminal prosecution of Danny Dankner is of interest, since the defendant was chair of Bank HaPoalim, the largest bank in Israel, equivalent of Bank of America in the US, and yet - he IS being prosecuted. Obviously, we need to wait and see what kind of spectacle is being produced by parties and the court, and to what effect. The land grabbing issue, in the pic below, is just a side story.
While Danny Dankner, former Chair of Bank HaPaolim is being prosecuted, his cousin Nochi Dankner is in default on various shady deals with two leading Israeli banks (including the same Bank HaPoalim), on a debt of about NIS 2.0 billions (about USD 0.5 billion, a huge sum in Israeli terms - one of the banks is going to lose 3% of its capital). As it looks now, the two banks will lose half of the loans in a "haircut", approved by the courts (what else?), with no consequence at all to the debtor.
In general, Israel, a relatively young nation, started out as a socialist country, then move to the welfare state model, but over the past couple of decades passed the US on the right (no inheritance tax, no capital gains tax). As a result, most manufacturing and natural resources are now held by a small number of families - the "Tycoons". (in Israel, the title of "Oligarch" is reserved for the Russian mafia-type counterpart).
The bottom line is that enormous losses were incurred by public pension funds as a result of conflicts of interests between tycoons, banks, and fund mangers. Sounds familiar?
But beyond it all:
Stanley Fischer, Governor of Bank of Israel, started the investigation of the management of Bank HaPoalim at the beginning of his tenure in 2005. Under Fischer's pressure Danny Dankner was indicted. But today, Fischer is permitting criminality by the same bank - Bank HaPoalim. But this time - to benefit the government of the US!
When will we see the first US bankster being criminally prosecuted?
jz
LINKS:
[1] 13-02-07 PRESS RELEASE: FATCA, Stanley Fischer - DC Attorney Opines - It Makes No Sense at All
____Israel's prosecutor seeks to add tax evasion to charges against former Bank Hapoalim chair
The prosecution says the police investigation of the case over the past several weeks has uncovered evidence that Danny Dankner was involved in drawing up a fictitious contract in an effort to evade paying taxes.
Nochi Dankner gets to keep IDB, bondholders get haircut
Bondholders apparently will get 15% of company's stock; not clear whether Argentine rescuer will come through.
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