Lebanese Canadian Bank dramatic fate..

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Prince Of Tides

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Yesterday Riad Salameh confirmed to Marcel Ghanem that the LCB will be merged with Societe Generale ..this dramatic development is the most serious turning point in the Lebanese crisis..I am surprised for the lightness of our politicians ( the new majority) towards this event..I hope that they had studied such probabilities ..to counter them with plans A and B..its obvious that new banks are on the "black" list..and while LCB is classified among the the top 10 performers ( the 9th exactly)..you can imagine that the task of shaking other less inportant banks is easier..this is by far more dangerous than the fingerprints issue ..Lebanon's main points of strength is this unique powerful and successful banking system..its obvious that 14 march are are going to the extremes : The Samson way..
 
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  • johnnyFPM

    johnnyFPM

    Legendary Member
    Yesterday Riad Salameh confirmed to Marcel Ghanem that the LCB will be merged with Societe Generale ..this dramatic development is the most serious turning point in the Lebanese crisis..I am surprised for the lightness of our politicians ( the new majority) towards this event..I hope that they had studied such probabilities ..to counter them with plans A and B..its obvious that new banks are on the "black" list..and while LCB is classified among the the top 10 performers ( the 9th exactly)..you can imagine that the task of shaking other less inportant banks is easier..this is by far more dangerous than the fingerprints issue ..Lebanon's main points of strength is this unique powerful and successful banking system..its obvious that 14 march are are going to the extremes : The Samson way..
    Why is the development dramatic? And why is it "the most serious turning point in the Lebanese crisis"? Did I miss something... ?
     
    HannaTheCrusader

    HannaTheCrusader

    Legendary Member
    Orange Room Supporter
    banks mergers all the time, big deal

    just waot and see when one day few years down the road where the lebanese govt might decide to stop paying the interests loans to baher al moutawasset and other sa3doun banks, than that will be drama lol.
     
    Shev

    Shev

    Well-Known Member
    probably geka's point is that LCB was performing really well up until a rumour of it being a cover for money laundry spread out. Despite being denied by both bank officials and Salameh, that wasn't good enough for clients who withdrew lots of amounts in a short period, which resulted in having LCB to be merged with SGBL. May be it's a matter of supporting and backing up backs or something of this sort. Other than that, this sounds pretty normal in the financial market.
     
    elias-aj

    elias-aj

    Legendary Member
    It's not the merger the problem, but rather the fact that the LCB was accused by the American Government of money laundering which could have benefited to dealers who are supposedely linked with HA (Americans pretend that approximately 200 millions $ were transfered each month). This led the American administration to forbid any transaction with the LCB.

    Then, the BDL and the LBA "showed solidarity" with the LCB as they were afraid the Americans were trying to target our whole Bank sector - and they wouldn't hesitate to do that as a leverage.

    And eventually, we learned that the LCB owners were negotiating with other banks to sell their shares in the LCB - while we don't know if they were forced to do that given the American accusations and the threat against our bank sector or if they already were negotiating and this accusation came at the right moment in order to accelerate those negotiations.

    So you can guess this might leave room for many kind of interpretations and speculations.

    One thing's for sure, the Americans will do whatever they can to discredit us and to prevent us from moving forward without their lackeys in charge.

    Now, if one wants to take measures against each bank in which a person supporting HA or is a HA member or ally has an account, then most of the major banks - and not only Lebanese - would be concerned, in my opinion.
     
    FBM

    FBM

    Active Member
    probably geka's point is that LCB was performing really well up until a rumour of it being a cover for money laundry spread out. Despite being denied by both bank officials and Salameh, that wasn't good enough for clients who withdrew lots of amounts in a short period, which resulted in having LCB to be merged with SGBL. May be it's a matter of supporting and backing up backs or something of this sort. Other than that, this sounds pretty normal in the financial market.
    Is this your analysis?!
     
    Dry Ice

    Dry Ice

    Legendary Member
    SGBL to merge with Lebanese-Canadian Bank

    By Osama Habib
    Daily Star staff
    Friday, March 04, 2011


    BEIRUT: Societe Generale has won a bid to merge with Lebanese-Canadian Bank, the target of recent accusations by the U.S. Treasury of involvement in money laundering and connection to a terrorist group, Central Bank Governor Riad Salameh said Thursday.

    Speaking to LBC TV station, the governor said that Societe Generale made the best offer to acquire the assets and deposits of the bank and assured the public that the bank has a clean balance and is well managed despite the accusations leveled by the U.S. Treasury.

    “We had assurance from the French who own a share in SGBL to support the merger of both banks. This reflects the big confidence in the Lebanese banking sector,” Salameh said.

    He did not disclose the value of the transaction but sources told The Daily Star that offers ranged between $550 million and $620 million.

    The governor also denied that the Central Bank had offered a loan to SGBL to acquire LCB.

    Societe Generale, which is affiliated to the French Societe Generale, has pledged to keep on all current employees of LCB.

    But Salameh admitted the decision to merge LCB had come at the request of the U.S. Treasury as a way to remove the scandal-hit administration and resume confidence in the bank.

    “We discussed many choices to save the bank and the best way was to merge the Lebanese Canadian Bank with another bank because defending the reputation of this bank may take several months and this is not suitable to the management of the Lebanese Canadian Bank,” Salameh said.

    An informed source told The Daily Star that the fact Societe Generale is part-owned by the French will give LCB some political protection, at least temporarily, from the U.S. campaign against banks suspected in illegal activity and in connection to terrorist groups.

    He added that the French group which owns 19 percent of SGBL have promised to increase their share in the bank, a move that would provide additional coverage and liquidity to LCB.

    SGBL is one of Lebanon’s Alpha Group banks, the 12 largest banks in terms of customer deposits (over $2 billion).

    Somewhat ironically, Lebanese-Canadian Bank has bigger customer deposits and assets than SGBL.

    The Lebanese-Canadian Bank has $5.88 billion in customer deposits up to 2010, an increase of 19 percent compared to 2009.

    The bank’s net profits last year reached $60 million, but even more impressively has no bad debts or acid assets.

    On Feb. 10 the U.S. Treasury said LCB, through management complicity and a failure of internal controls, was used “extensively” to move as much as $200 million a month in proceeds from illicit drug deals.

    Salameh stressed that all deposits in the bank are intact and there is no threat against them, reiterating that the Central Bank’s main concern is to protect the banking sector and depositors.

    Fransabank, Banque Libano-Francaise and Byblos Bank also made offers to acquire the Lebanese Canadian Bank.

    Asked if the Central Bank will treat Hezbollah as a terrorist organization, as it is viewed by the U.S. administration, Salameh emphasized that Hezbollah is a Lebanese party and “we have to follow the Lebanese law in this regard.”

    “They [the U.S.] are free to think whatever they want. We only comply with U.N. Security Council resolutions and we have always abided by these resolutions especially when there was a decision not to deal with Iranian banks,” Salameh said.

    He added that the U.S. Treasury has accused certain Lebanese individuals of drug-related money laundering.

    “We did not look at the evidence which the U.S. Treasury has concerning this case with the exception of what was mentioned in the press. We are currently conducting an investigation to check if these violations took place,” Salameh said.

    He added that the Central Bank intends to strengthen measures to improve banking supervision and ensure that all banks are complying with these directives.

    Salameh said that the Central Bank will organize the cash which flows to the country and its banks and most notably the cash which is being carried and deposited by combos and exchange dealers.

    “The Lebanese banking sector is in a sound position and there is no threat against these banks,” he argued.
     
    elias-aj

    elias-aj

    Legendary Member
    This is really strange, I mean you don't close a merger in the bank sector so quickly.

    I can't buy the fact that they launched the proceedings only some weeks ago as you can't decently make an offer without knowing exactly what you're buying, ie without the "due diligence" process which takes a lot of time... unless the offer concerns only the assets of the LCB and the deposits as it is said in the article and not the shares of the LCB. But even in this case, you need to check and value the assets and this also takes a lot of time.

    Anyway, the whole story is really strange, even fishy...
     
    Chaos

    Chaos

    Active Member
    This is really strange, I mean you don't close a merger in the bank sector so quickly.

    I can't buy the fact that they launched the proceedings only some weeks ago as you can't decently make an offer without knowing exactly what you're buying, ie without the "due diligence" process which takes a lot of time... unless the offer concerns only the assets of the LCB and the deposits as it is said in the article and not the shares of the LCB. But even in this case, you need to check and value the assets and this also takes a lot of time.

    Anyway, the whole story is really strange, even fishy...

    You are completely right, just a hint:
    Now Antoun Sehnaoui has a legal access to the LCB archives!
     
    P

    Prince Of Tides

    New Member
    Why is the development dramatic? And why is it "the most serious turning point in the Lebanese crisis"? Did I miss something... ?
    I hope that the coming days wont prove that lots of Lebanese are missing many things Johny .this is no ordinary merger ..the usual "engulf and devore" we witness in the world of finance.. it was the last thing on LCB administration mind..I mean the simple idea of being liquidated so fast so helplessly..after being accused by the americans of money laundry..this bank main operations relied mostly on deposits of Lebanese wealthy Shia immigrants in Africa..the administration assigned a group of lawyers to handle the accusations in the USA ..Riad Salameh went there for this reason..but the legal procedure will take a lot of time ..you know the rest ..Mr Sehnaoui was ready ..notice that this merger
    The lebanese banking system is targetted more than HA weapons..if you control it you control the air that the lebanese breath ..
    Surely Mr Sehnaoui will be ready for another round and another bank !
    No! its not an ordinary merger that happens all the time
     
    The Jade

    The Jade

    Legendary Member
    Could we take a break a stop with the conspiracy theories ?

    Those money laundering accusations from an official US body are not a joke.
    It's not as if the Lebanese Canadian Bank holds our deepest secrets and the americans would want access to it.

    After all, if they wanted access to their archives, they could have done it in much simpler ways than going all out like that.

    If anyone has doubt that Hezbollah or any other Lebanese party might be laundering money then we have a serious issue at hand.
    After all, Hezbollah needs the money to finance all its projects in the south and Iran might one day stop the shipments.

    And that applies to other parties in Lebanon too....

    The merger was done so quickly in order to avoid a crash of the banking sector.
    If the LCB had gone bankrupt, our whole banking system would've shaken.

    And it's extremely normal that Salameh states that there was no money laundering, even if it's not true, just for the sake of saving the banking system and not Georges Abou Jaoudeh.
     
    vegojimbo

    vegojimbo

    Legendary Member
    Could we take a break a stop with the conspiracy theories ?
    lol, u preach others and do the exact same thing in the same post. hahaha
    Those money laundering accusations from an official US body are not a joke.
    why not? remember the WMDs in Iraq? They also came from an official US body.
    It's not as if the Lebanese Canadian Bank holds our deepest secrets and the americans would want access to it.
    It's not as if the American Administrations gains anything by destabilizing Lebanon's economy and blame HA for it, right?
    After all, if they wanted access to their archives, they could have done it in much simpler ways than going all out like that.
    not that this was their intention, but what simpler ways?
    If anyone has doubt that Hezbollah or any other Lebanese party might be laundering money then we have a serious issue at hand.
    oh My God! we have a serious issue at hand.
    HA might be laundering money, I don't know. But for you to be sure, you must be in the loop. What an important man you are.
    After all, Hezbollah needs the money to finance all its projects in the south and Iran might one day stop the shipments.
    so ur proof is something that might happen in the future. Double lol.
    And that applies to other parties in Lebanon too....
    as if this comment will help u appear oh so independent and objective. Whether u are or not, u just made uncorroborated generalizations.
    And it's extremely normal that Salameh states that there was no money laundering, even if it's not true, just for the sake of saving the banking system and not Georges Abou Jaoudeh.
    OMG. so now Salameh is a liar now? How nice, an official US body can not lie, but an official Lebanese body is automatically lying. Oh the logic!
     
    Jean

    Jean

    Legendary Member
    Could we take a break a stop with the conspiracy theories ?

    Those money laundering accusations from an official US body are not a joke.
    It's not as if the Lebanese Canadian Bank holds our deepest secrets and the americans would want access to it.

    After all, if they wanted access to their archives, they could have done it in much simpler ways than going all out like that.

    If anyone has doubt that Hezbollah or any other Lebanese party might be laundering money then we have a serious issue at hand.
    After all, Hezbollah needs the money to finance all its projects in the south and Iran might one day stop the shipments.

    And that applies to other parties in Lebanon too....

    The merger was done so quickly in order to avoid a crash of the banking sector.
    If the LCB had gone bankrupt, our whole banking system would've shaken.

    And it's extremely normal that Salameh states that there was no money laundering, even if it's not true, just for the sake of saving the banking system and not Georges Abou Jaoudeh.

    How do you ask taking a break and stop the conspiracy theories while all what u wrote is a conspiracy theory?

    We heard many times about indirect threats from the Americans of fighting Mikati's government economically. Couldn't that be the reason of the sudden story of LCB?

    Why are you sure that HA is laundering money, while you dismiss other theories ?
     
    CedarJet

    CedarJet

    Well-Known Member
    After the news that SGBL bought out LBC, I for one took whatever I had in there and moved it to another bank. They protested for a bit, but I won't be giving any business to a known thug.
     
    Youchka

    Youchka

    Legendary Member
    To whoever doesn't know it, go ask. All Lebanese banks have money laundering accounts, and the bank that tells you they don't are liars. What happened to the Canadian bank is a CLEAR political message wala aktar wala akal. It is neither a conspiracy theory nor a hatoutit sette, it is the real story. It happened that this exact money laundering goes to a guy who finances HA. Why no one approached the very known Aishti guy? He is the king of money laundering in Lebanon. Oh wait, he is close to Hariri.
     
    Dry Ice

    Dry Ice

    Legendary Member
    The timing of the American move on this bank is suspicious.. did Hariri give the green light for his allies to go ahead with this pressure move on the Lebanese establishment and Hezbollah?
     
    baloo

    baloo

    Legendary Member
    Orange Room Supporter
    This whole story started just after 2006 July war !
     
    coralie

    coralie

    Legendary Member
    To whoever doesn't know it, go ask. All Lebanese banks have money laundering accounts, and the bank that tells you they don't are liars. What happened to the Canadian bank is a CLEAR political message wala aktar wala akal. It is neither a conspiracy theory nor a hatoutit sette, it is the real story. It happened that this exact money laundering goes to a guy who finances HA. Why no one approached the very known Aishti guy? He is the king of money laundering in Lebanon. Oh wait, he is close to Hariri.
    when i started to read this thread one name came to my mind = the owner of Aishti and i said to my self why noone is talking about this laundry money machine Aishti ? . and here we are youch you said it ....... he is close to hariri = safe and well protected .

    The jade

    what if all this tom and jerry banking game is not only to save the banking system ? what if it was to make all the banking system under the harirism controle ? money laundry can be done with sooooo many different ways closing/merging one bank under this slogan will not serve the purpose ! Aishti is one exemple !

    how many of you know what sort of under the table deals are made to sell banks to saoudi rich prince ? or saoudi / koweiti / .... rich "business"man ?

    laundry money is not allowed in your mind when HA is involved but it is ok if it is financing terrorists like fath el islam ? we all know from which bank the use to cash their monthly pocket money dont we ? so one hurt the banking system the other not ? yeah right the big master USA said so ...hail the savior of our banking system USA they revealed the face of evil ! !
     
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