Bank resolution: Bankers benefit and depositors bear the brunt

Every bank restructuring and deposit restitution plan over the past four years was rejected mainly by bankers. After the past unsuccessful attempts, close associates of caretaker Prime Minister Najib Mikati believe they have finally found the philosopher’s stone. This new elixir, made by a team led and orchestrated by Mikati’s adviser Nicolas Nahas obtained approval from the banking establishments, particularly the most influential ones, who seem to have played the role of alchemists in its making, according to information gathered from sources close to these circles. If the measures stated in the draft —which L’Orient-Le Jour reviewed — remain as they are, the banks would be required to repay a ridiculously low sum of less than $9 billion in cash, as per our calculations, over 11 years. The total deposits amount to $86 billion. Read...