By Alexander Apostolides on June 12, 2009

"Mr. Marfin": Correct responce by the house of representatives.

Well done House. Unlike the government (with the president and the minister of economics on the forefront) the parliament is to bring "Mr. Marfin" into account for the frankly bullying behavior he has exhibited. The government just unfairly blamed XAK and the Central Bank of Cyprus.

I forgot to mention the scariest about the AGB of Marfin Laiki. Mr. Marfin expressed that the National Bank of Greece was quite small - a bank 5 times Marfin's size. I worry in how big he wants to make Laiki, and the consequences of such expansion.

By Alexander Apostolides on June 09, 2009

Orphanides vs Mr marfin - who is right?

I wanted to ask people in general as to who do you think is right on these issues - issues that according to "Mr. Marfin" were behind his decision to take Laiki to Athens.

1) Should a major shareholder be able to buy shares before and after major decisions are going to be announced for his company?
If you answered no, the you are right on the basis that the CEO / major shareholder could have access to information that the general public is unaware off – a way of insider trading. However Mr Vgenopoulos was furious that the head of the Cypriot central bank and the executive committee of the Cypriot stock exchange (XAK) enforced a closed period – so he lost the change to buy the a greater share of the bank when prices were down. Both (Central bank of Cyprus, XAK)have been doing their work perfectly and it is to them that we owe our thanks for our banks not being exposed to the global financial meltdown that is happening.

2) Is there a giant conspiracy network, operated by connection of the bank of Cyprus, to keep Bank of Cyprus supreme?
Personally I think that even if such a think existed it was in the past and it is not existing any more – Bank of Cyprus is just better at doing business and Cyprus is a tough market for any bank to increase its market share. In fact a former Bank of Cyprus man and now a minister of economics, Mr Stavrakis , publicly criticized the position of the head of the Central bank of Cyprus.

I anything the environment in Greece is much more murky than in Cyprus – and I fail to see what advantage Vgenopoulos will have in moving to Athens, other than the fact that he can control decision making in Athens, while the regulators have thwarted his attempts to do what he likes in Cyprus.

3) Was it a good idea not to allow Marfin to buy out Bank of Cyprus in 2007?

Some say that if we gave the bank to the interests behind Mr Vgenopoulos, then he might not have moved the central offices of Marfin out of Cyprus. .I actually think that since he was not willing to play within the regulatory framework, the central bank and the XAK was right in not trusting him with any such buy out. Can you imagine if Bank of Cyprus also left Cyprus, following a merger with Marfin?

What do you think?