13-04-29 Judge Gives Dankner's IDB Development Two Days to Settle With Creditors

Nochi Dankner, one of a handful tycoons, who now control the Israeli economy, the parallel of the US "too big to fail", "too big to jail".

The default of Tycoon Nochi Dankner and his pyramid scheme – I.D.B. Pituach – are quickly developing into a landmark case in arrival of the global financial crisis to Israel. 

It started as an attempt by the banks to provide a “haircut” - waiving huge loans, on which Dankner is defaulting, to the determinant of shareholders and retirement funds. 

The total sum of the loans, which were given by all major Israeli banks with no adequate collaterals and in disregard of "sound banking principles" is still unknown, covered up by the pyramid scheme. 

Initially, the default was estimated at NIS 4 billions, then NIS 8-9 billions. 

Public outrage stopped that effort to end the case with a “haircut”.

Now, with the case in its first day in court, it appears that all sides – the I.D.B., the banks, and the court, are eager to close the case with no adequate public transparency. 

During the opening proceeding, yesterday, April 28, 2013, Judge Orenstein called for a settlement within 2 days, before any discovery has even been conducted.

Corruption of the courts and financial institutions go hand in hand in the global financial crisis...

LINKS:

[1] 13-04-29 Judge Gives Dankner's IDB Development Two Days to Settle With Creditors _ Haaretz

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