Small investment bank MP Bank has boasted of not having been one of the risky Icelandic financial institutions of the last few years, accepting no governmnent assistance while most of their competitors had to.
The Word On The Street column on Eyjan.is makes a good point when it ponders the intentions behind the new retail banking division at MP Bank which is celebrating a successful start in savings accounts.
The largest problem with the model which the Icelandic banks operated with was that they were both retail banks and investment banks. The trouble with IceSave is that individual customer’s savings were used to keep the investment part alive, where doomed loans to businesses related to the banks or their largest owners loomed large.
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Robert Culfield
2 years ago
Uh oh! Here we go again!
Vilhjalm A.
2 years ago
MP Bank investigated by Lithuanian & Iceland FME for inadequate recordkeepng, treating customers badly and not following regulations:
http://www.mbl.is/mm/vidskipti/frettir/2009/07/09/visar_mp_banka_til_fjarmalaeftirlitsins/
And what exactly was MP Bank doing in Lithuania?
And why the recent Iceland – Belarus “trade” interest?
The “trade interest” wouldn’t be money Money Laundering, would it?