Written by: Aaron Katsman | April 1, 2009
In an upset that could spawn internal fighting within the United Torah Judaism(UTJ), MK Moshe Gafni scored a win over favorite Yaakov Litzman to head the powerful committee.
According to Globes: “MK Moshe Gafni (United Torah Judaism) will be the next chairman of the Knesset Finance Committee, the party’s five MKs decided today. He beat party chairman and former Finance Committee chairman MK Yakov Litzman for the post. Litzman has been expected to get it back. The upset occurred during the internal party voting, when MK Meir Porush, a member of the Agudat Israel faction of the party, backed Gafni, a member of the Degel Hatorah faction of the party. When the voting was over, Litzman stormed out of the room.”
Once again Porush finds himself in the middle of a political firestorm. His intrusion into the local election in the ultra-orthodox city of Beitar Illit, irked so many, that he ended up losing in his bind to become mayor of Jerusalem.
Written by: Israel Investor Newsletter | April 1, 2009
As consumers across the world suffer the impact of the current financial crisis, Israelis are not different. Consumer confidence continues to plummet.
Analysis of the Consumer Confidence Index by Smith Institute shows that the lightening rod of public pessimism is the assessment of the current economic situation. 77.7% of respondents believe that the current economic situation is poor, and 45.8% believe that it will worsen over the next six months. However, only 21.5% of respondents believe that their personal economic situation will worsen over the next six months.
As for future private consumption, trend figures for the Consumer Confidence Index for the past six months indicate a further drop in private consumption.
Written by: Zack Miller | March 26, 2009
Israel’s economy is dominated by fantastic wealth in the hands of a few families. During times of prosperity, these families have used the Israeli banking sector as a form of personal piggy bank to finance expansionary business activities. This has worked out well for the oligarchs and for the banking sector. These tycoon families have had ample capital to grow out their wealth and the banks have had very big, captive customers.
But what happens if these Israeli investors suffer from the same global malaise from which all markets and investors are suffering? Will Israeli oligarchs require a government buyout?
Well, Supervisor of Israel Capital Markets, Insurance and Savings Yadin Anteb, doesn’t think there is a crisis. When questioned this morning about the government stepping in to help bailout billionaires like Shari Arison who recently put her world-class yacht, My Shanti, up on the auction block for an estimated $100m:
If a company takes a loan and does not repay it, its other assets should be seized; it definitely shouldn’t get government aid…There’s no reason to inject money to save an Israeli tycoon. I don’t think that there’s any reason to do this. The pressure of the tycoons’ companies it transferred to the lenders.
When asked about Bank Hapoalim controlling shareholder Shari Arison putting up her yacht for sale for $100 million, [Bank HaPoalim chairman] Dankner replied, “To the best of my knowledge, Arison has no liquidity problem.”
Well, the lenders here are core Israeli institutions. We’ll see what the government says when a large Israeli bank comes crying and the ship has already left port.
Written by: Aaron Katsman | March 3, 2009
So who says all CEO’s are bums? If you listen to those in the Obama administration you would think that being a CEO is worse than being a lawyer. Well there is an Israeli CEO, Eli Yones of Mizrahi Tefahot Bank, who may change the president’s mind. You see Mizrahi Tefahot Bank is actually quite profitable,and as such Yones was entitled to and deserved a very large bonus. Yet he decided to decline it so that his employees would receive it for their hard work.
According to Globes: “Yones said, “Continuing the bank’s profit trend and the ongoing improvement in its image and positioning as a stable, successful, and leading bank are the result of hard and goal-oriented work demonstrated by the bank’s employees last year. There is no doubt that they deserve appreciation and financial compensation for this. Nonetheless, we must not ignore the difficult economic reality and expectations that the recession will worsen in 2009.”Yones advises that Mizrahi Bank’s 2008 bonus budget be smaller than the bonus for the bank’s 2007 profits. The 2008 bonus should reflect the employees’ achievements as well as the economic crisis and public mood.As for his own bonus for 2008, Yones said, “In such times, I believe that the bonus budget should go entirely to the employees and managers of the bank.”
How about showing Yones some appreciation for his bold and selfless move?
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