Dude, Have You Seen My Bank?


Sometimes you really can’t make this shit up. Link is in Romanian but my translation of the first paragraph is:

Because there are no commercial banks in Romania which support agriculture, Romania needs a bank to finance agriculture and help farmers said the Minister of Agriculture, Stelian Fuia.

Jeez, if I remember correctly, Romania used to have an Agriculture Bank. In fact, they had one since 1937 all the way up until 2001 when the American government financed some of its own barons so they could “help” sell it to Raiffeisen for 15 million Euros in cash in July of 2001.

I guess someone forgot to tell Mr. Fuia that.

LONG LIVE THE GREAT CAPITALIST ALLIANCE!

4 Comments Add yours

  1. Lucian Blaga says:

    Dude, Romania had not only a bank for agriculture, it had also agriculture. And some other industries. All of that was first bankrupted and later on sold for spare money ;)

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  2. jos_cenzura says:

    Dude, apparently the bank, when state-owned, was (predictably) involved in shady deals involving political favors, since there was no risk to the bank itself (as it was backed by the state, i.e. taxpayers). A state-owned bank always has this moral hazard problem – it can take high risks or even make loans it knows it won’t recover, because it is backed by the state and there is no fear of losses, unlike the private sector. (Well, after the bailout age, apparently even private banks don’t have to worry so much about cutting losses, provided they are large enough and politically connected enough). Thus, I think it’s extremely dangerous to have state-owned banks, period, so good riddance to the Banca Agricola…

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    1. jos_cenzura says:

      The first sentence here (http://www.romanialibera.ro/opinii/editorial/cec-nu-a-adus-bani-a-luat-81451.html) albeit coming from the IMF and the World Bank, sums up what I had to say… Anyway the abbreviated story and links here: http://ro.wikipedia.org/wiki/Banca_Agricol%C4%83

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    2. jos_cenzura says:

      With the risk of being a pest, more on state banks in Romania (all of this is 100% predictable when you give the state the power to issue credit): http://www.adevarul.ro/actualitate/Escrocii-bancari-Romania-puscarie-milioane_0_58796446.html

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