16 April 2016

Writing on the American Banker website, Sharyn O’Halloran, a George Blumenthal Professor of Political Economy and a professor of international and public affairs at Columbia University, wrote that in its actions against FBME it is clear the “… overzealous FinCEN needs more oversight” from US authorities. She described FinCEN’s proposed punishments as “draconian”, and pointed to the “… glaring gaps in its administrative process and lack of substantiated claims in its pursuit of FBME, (which) suggest that FinCEN sleepwalked toward a predetermined outcome of simply wanting the institution closed”.

She added that “… it also appears that FinCEN’s targeting of the bank borders on unconstitutional,” and believes that in opposing FinCEN’s strictures FBME “… has a good case”. The full article can be accessed here: http://www.americanbanker.com/bankthink/overzealous-fincen-needs-more-oversight-1080438-1.html

12 April 2016

The employees of FBME Bank in Cyprus have gone on strike until further notice. They have walked out because of the unreasonable actions of the Special Administrator of the Central Bank of Cyprus (CBC), plus the overall behaviour and actions of the CBC and the Cyprus authorities. A statement has been issued by the employees which reads as follows:

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12 April 2016

 Mr Alekos Markides, a former Attorney General of the Republic and now legal advisor of FBME Bank Ltd made two separate interventions on state radio CyBC (12 April) and MEGA Television (9 April) in response to the recent activation of the Depositors Guarantee Scheme. He claimed that the Central Bank has lacked a strategy and is now merely trying to divert attention from its mishandling of the situation.  Continue reading →

10 April 2016

Following a series of unilateral, illegal, arbitrary and irresponsible actions by the Central Bank of Cyprus (“CBC”) the delayed announcement on 9 April 2016 that the Deposit Protection Scheme is activated is a welcome move, coming some 21 months after the Resolution Authority and the CBC acted against FBME Bank Limited (“FBME”).

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6 April 2016

The Special Administrator of FBME Bank Limited Cyprus Branch has issued letters of termination to 136 employees supposedly to cut costs to safeguard deposits. The reason is, ostensibly, cost savings in order to protect depositors. Currently the Bank has capital and reserves of 162 million dollars over and above the funds available to cover all deposits and any cost saving would be deducted first from this. Accordingly, this purported cost saving has no benefit to depositors. Indeed, to the contrary, the ability of the bank to conserve its assets is adversely impacted because of the loss of staff.

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2 April 2016

Chris Iacovides, the Special Administrator of the Cyprus branch of FBME Bank Ltd who was appointed by the Central Bank of Cyprus (CBC) in January, delivered on 31 March 2016, signed redundancy notices to 136 of FBME Bank staff members in Cyprus, covering the major part of the remaining employee base of the Bank in Cyprus.

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27 March 2016

The purported “Final Rule” that FinCEN released on Friday, 25 March 2016, is not in fact “final” at all.  It is subject to a preliminary injunction by a federal court in Washington D.C. that bars the rule from taking effect pending further inquiry by that court into the fairness, accuracy and legality of FinCEN’s process.  The “Final Rule” is also subject, by its own terms, to a four-month waiting period between official publication and effective date.  FBME has every right and intention to challenge the legality of the “Final Rule” so that the U.S. court can decide whether it should ever take effect.

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11 February 2016

 The former Governor of the Central Bank of Cyprus (CBC), Professor Panicos Demetriades, has written to FinCEN regarding its campaign against FBME in which he says he is “… most surprised by FinCEN’s actions relating to FBME”. This letter appears on the FinCEN website and is available to the public:  http://www.regulations.gov/#!documentDetail;D=FINCEN-2014-0007-0069.

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10 February 2016

 Further comments on the FinCEN website regarding the agency’s handling of the FBME case were submitted by Sharyn O’Halloran, George Blumenthal Professor at New York’s Columbia University. In her letter sent to FinCEN and put into the public domain Professor O’Halloran explained that her specialist area is the study of US administrative processes, regulatory powers and oversight functions.

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9 February 2016

Comments have been submitted to the US agency FinCEN in respect to its Notice of Proposed Rulemaking against FBME Bank Limited. These follow FinCEN’s request for a voluntary remand to revisit its allegations and proposed actions, which it sought from Judge Cooper of the US District Court for the District of Columbia.

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