Final Word from Monday, March 20, 2006
There's little doubt that IPB was in trouble in June 2000 and was ripe for forced administration. The question raised by the arbitration verdict in Nomura's favor on Fri., though, is why this occurred. The arbiters ruled that Nomura was discriminated against by not receiving the same assistance given to the other banks. The state became aware of the need to provide assistance when it was still possible to prevent the collapse of IPB, the panel ruled. Yet there are signs, the panel said, that government sources instead spread negative reports in an effort to speed up the bank's collapse. In essence, the bank was intentionally bankrupted. Miroslav Kalousek of KDU-ČSL argues that everything was agreed long in advance. It's clear that IPB and Nomura were no saints, but neither were those who orchestrated the bank's downfall. The question now is whether they broke any laws. [Czech Republic insolvency ČSOB]