Written by: Aaron Katsman | May 7, 2009
The richest women in Israel, Shari Arison came out swinging today, blasting the Bank of Israel and accusing them of trying to nationalize her bank. Fresh off news that she is in divorce proceedings from her felon-husband Ofer Glazer, Arison is taking out her frustration at the BOI and she may be justified.
After all, the government doesn’t own the bank so why should they have a say in who she hires and fires as CEO of Bank Hapoalim?
According to Globes: “Arison said, “This isn’t control. This is a raid. It is creeping nationalization, and rapid creep. I won’t lie to myself, and I won’t do something that I don’t believe in just to placate a demand that I consider utterly unjustifiable. I feel very hurt. An arrow was fired and the target was drawn around it. There’s a feeling of McCarthyism - no law, no justice. This is simply a frame-up just because someone doesn’t like somebody else.”
Maybe the Bank of Israel should stick to payinmg attention to the economy, and worry less about non-government companies. Go get ‘em Shari!
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.
