In 50 pages, Prosecutor of the Court of First Instance reveals that Attica bank has destroyed invest
The squandering of the money of the insured is a huge financial scandal; however, the vicious circle in Attica bank continues as they want TSMEDE to invest another 50 million in the increase of 240 million euros.
The Prosecutor of the Court of First Instance, Stefanos Baxevanis, in a text of 50 pages proves that Attica bank has destroyed investors and insurance Funds. In particular, investigating the case of the participation of TAPILTAT of the Mutual Aid Fund of the Ionian and Laiki Bank and other Banks, in the capital increase of Attica bank shows that funds were wasted to the detriment of the insured… with the argument that Attica bank should be saved. It should be noted that bankingnews for the 2015-2016 capital increase of Attica bank and the participation of TAPILTAT had with successive publications states that the Fund will be financially damaged if it participates in the increase of the bankrupt Attica bank. Attica bank as a non-systemic and unsustainable bank, despite being repeatedly recapitalized mainly through the TSMEDE Engineers Fund, continued to show a growing capital deficit. An increase of 750 million euros was decided in November 2015, however, past experience has shown that participation in the increase did not secure investors as in all previous capital increases, the invested funds were lost. At the same time, the staff associations of other banks such as Alpha, Eurobank, Attica bank submitted a request for group withdrawal from TAPILTAT. In the midst of such a climate, the capital increase of Attica bank was launched and it was planned that TAPILTAT would participate together with TSMEDE. He was also involved in the casePantelis Tsitos as the director of the Private Investments sector of Alpha bank who, anticipating the risks, had suggested that his clients not participate in the capital increase of Attica bank. TAPILTAT, however, decided to participate with 55 million in the capital increase of Attica bank - which at current prices are worth 750 thousand euros. The prosecutor in the 50 pages of his proposal states that "the defendants - ie the management of the Fund - were well aware that the decision of TAPILTAL to participate in the capital increase of Attica bank was made in violation of the institutional and statutory framework, but also the principle of good administration as it was from the beginning a loss-making and unprofitable investment for the interests of the Fund. In fact, the prosecutor states that TAPILTAL relied on a Certified Auditor of Crowe Horwath, where by direct assignment he drafted the proposal - suggestion that the Fund participate in the capital increase of Attica bank. The Assessor's assessment was considered inaccurate as it did not take into account key elements for taking such a large risk. The 55 million invested in Attica bank accounted for 6.77% of the total available funds but together with other investments in shares reached 48.5% of the total cash. Attica bank had a capital deficit of 1.021 billion euros or 29% of its assets and had particularly bleak prospects. By the beginning of 2020, TAPILTAT had suffered financial disaster from this investment as it had lost 45.36 million out of the 55 million investment and as it emerged based on the current situation, it has suffered even greater loss as the 55 million are worth 750 thousand euros. In his proposal, the prosecutor accuses the TAPILTAL executives of infidelity as the damage is irreversible.
If TAPILTAL invested 55 million worth 750 thousand, what should TSMEDE say, which has invested 1 billion all these years and the value of the investment is 14 million euros? The squandering of the money of the insured is a huge financial scandal; however, the vicious circle in Attica bank continues as they want TSMEDE to invest another 50 million in the increase of 240 million euros.
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