Crony Capitalism – here, there and …

Julia Timoshenko – accuser and accused

A bank under state administration since 2009. Seeking private investors to re-capitalize the ailing financial institution. Tax payers on the hook for most of the bailout.

Another article decrying the beleaguered tax-payer having to subsidize the rich bankers responsible – the current capitalist model of socialism for the rich?

Must be about the UK right? Another European country? The US?

No – The Ukraine. I came across it in the Beyond Brics blog on the Financial Times website in a post by Roman Olearrchyk.

Crony Capitalism stretches as wide as it runs deep.

The bank in question Nadra is to be bought into by Dmitry Firtash a Ukrainian billionaire giving him a 90% controlling stake. That’s where the UK difference ends at least. No billionaires looking to buy such a stake in the Royal Bank of Scotland or Lloyds. Nadra is though mere small-fry compared to the global golliath-type UK banks. It’s assets and more relevantly liabilities are just about covered by a billionaire.

Former Prime Minister of that country Yulia Timoshenko continues to accuse Firtash of murky and untransparent dealings and is now under investigation herself (which itself perhaps another crony capitalist gesture by the current president and political opponent Victor Yanukovich).

That is at least an un-crony like gesture by a former political-leader.

The article also notes that he would be able to use his media empire to improve the bank’s reputation. They mean by the smoke and mirror of advertising and other spin to sell the proverbial pigs-ear as a purse. Never mind improving a bank’s reputation by improving the bank.

Crony Capitalism stumbles on.

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