Warka bringing a lawsuit against the Central Bank of Iraq

[Stryker365]

I know I am not the sharpest knife in the drawer, but I have this feeling that there is a great deal of jumping-to-conclusions going on here.

1. I don't see where Reuters said Warka was insolvent. I only see what appears to be the reporting of a statement of "a senior official of the CBI" to wit: "Iraq's central bank placed private bank Warka Bank under guardianship to supervise it through insolvency, a senior official in the central bank said on Sunday."[undocumented heresay]

2. The reference to 90 million dollars is stale news from August of last year. It refers to a requirement that Warka increase its capital to meet goals established by CBI. It does not say there is a 90 million dollar loss on the books of Warka.

There maybe something to this story . . . I don't know. But it appears that most of the discussion claiming Warka's insolvency is based on a patchwork of a fact from here and a statement from there. They may be connected, they may not. I just wish you would quit calling the death of my golden calf on such loosely associated "facts". It ain't over until the fat lady sings, and I haven't even heard her warming up, yet.

Peace and prosperity to all,

MINOTAUR

I like you newbie, welcome to the team! That is why I said that it could be someone trying to take Warka down, just look at the GOI their trying to take each other down all the time. The guy making the statement may have just got turned down for a loan for goodness sake!!!...or could be the brother of another bank...

[truthful1]

The cbi stepping in is good. hopefully theyve seen the problems and are stopping it from getting worse. The cbi seems to be taking over and trying to hand it over to someone else. i havent seen where the cbi is going to compensate for any loss or shortfalls, it seems like a handoff to potentially new administators or owners. I hope the best for all involved with warka, its not over yet.

Edited March 9, 2012 by truthful1

[Patriotic_mess]

Here is a snip from Yotas article yesterday.

The source added that the Warka Bank did not declare bankruptcy, according to figures available, our imam Vemogodat Warka cover liabilities and increase it much, but stopped payment on the borrowers and the problems of government decisions caused the lack of cash to Warka.

This article says Warka is not bankrupt and that the CBI is partially to blame because of the reduction in IQD. Haven't we been hearing for some time now that the banks are short on cash because the CBI is collecting it? This could be another explanation as to why we are seeing this happen. And an RV is an easy solution to this problem.

[Stryker365]

Well I hope it all works out with those who have invested in Warka. I have to say the fact that Warka is planning to sue CBI surprised me. Why would they do that? The only reason I can think of is it is a stall tactic to prevent CBI finding out where the money went. It wouldn't surprise me Warka has made some shady deals with shady people. The rumor Adam heard may be a tip of the ice burg. I would not be surprised to find out Warka may have been involved with terrorist groups. So I suspect the lawsuit is like a barrier for Warka to do a whole lot of paper shredding and trying to clean up the traces of nasty business. I don't think a lawsuit will hold CBI off for long, because if a central bank decides to take over, they will.

I'm with you on the suing issue but I wouldn't put much thought in it because the more I think about it the more i think it MAY have something to do with the RV, yes I said RV. . Here is a theory..the bank is not up to where they were according to all the articles and CBI themselves; all banks were to be at a level before they could make a change right...right! OK just MAYBE by CBI being involved they are now, see what I mean...they could just be getting ready for something to happen and they couldn't because of the rules that have been put on them.

Please be aware of how I have worded this..it's just a theory and I have used words like MAYBE and could! Not you zig the other readers, by the way did I take this too personally....it's just a joke you don't have to answer that thegente... :lol:

[Carrello]

I think CBI will straighten things out. Think about it: billions and billions of international investments are just coming into Iraq and one of the main banks goes belly up. How anxious would you be to invest in Iraq? Talk about a risk. Any good business person would have to seriously contemplate the way contracts were written and liabilities, not to mention sinking money into a country filled with corruption and danger. I think the government has to make Warka whole again (if indeed Warka is bankrupt - tbd), and probably spend plenty on a PR campaign as well. 90 million dollars is nothing in the scheme of things considering business lost, trust, and credibility tossed in the trash. Neighboring Arab countries would be hesitant to support Iraq, not to mention a partnership in a shipping port. The Arab Summit would have to revise their agenda to add "Failing banks in Iraq - what to do". Not a good workshop topic.

JMHO.

I would also like to say that this is not just a news article. We have friends here that have money in Warka, and for some of us it was a stretch to invest in Warka, and a loss is not easy to swallow considering everything else we have experienced financially since 2007. Tensions are running hot, nerves are raw, and many of us need this. Is that a reason to invest in a speculative interest when we know what could happen? Well, we are human trying to survive. I am lucky in that I just have myself to worry about, me, a business that is doing okay, and a Rat Terrier. But others have older parents, kids, homes, businesses, all that rely on them financially. That is stress and then some more stress piled on just for fun.

So let's lighten up a bi,t and rather than saying I told you so, how about I am sorry and I hope you get your money back.

[Stryker365]

Here is a snip from Yotas article yesterday.

This article says Warka is not bankrupt and that the CBI is partially to blame because of the reduction in IQD. Haven't we been hearing for some time now that the banks are short on cash because the CBI is collecting it? This could be another explanation as to why we are seeing this happen. And an RV is an easy solution to this problem.

Good point with yotas article, makes sense to me!

Also, they really don't want the citizens that have been reluctant from opening bank accounts because of what Saddam did to them by reaching into their accounts and stealing their money to see a major bank go BK. They would never ever open an account after that one, IMO

[Carrello]

Well I hope it all works out with those who have invested in Warka. I have to say the fact that Warka is planning to sue CBI surprised me. Why would they do that? The only reason I can think of is it is a stall tactic to prevent CBI finding out where the money went. It wouldn't surprise me Warka has made some shady deals with shady people. The rumor Adam heard may be a tip of the ice burg. I would not be surprised to find out Warka may have been involved with terrorist groups. So I suspect the lawsuit is like a barrier for Warka to do a whole lot of paper shredding and trying to clean up the traces of nasty business. I don't think a lawsuit will hold CBI off for long, because if a central bank decides to take over, they will.

What about the auctions. All of a sudden paper work had to be submitted to verify who the money was being sold to. Black market, Iran, who knows who the money was being sold to. Perhaps Warka was a big huge player in this.

Good morning, Zig.

[SgtFuryUSCZ]

***///

REUTERS IS OWNED/CONTROLLED BY THE ROTHSCHILDS... !

Any time THEY are the source - read it from the standpoint of what's BEST FOR THEM, not us...

They used it to control alot of what went down during WWII also...

Propaganda to manipulate to their benefit.

Now think -- why would the most powerful money/war-mongers in the world want to control an

entity like Warka...?

[Stryker365]

Nice Carrello, I've got to go pick my boy up but I wanted to let you know that JWJW is back!!!!!

[Carrello]

Here is a snip from Yotas article yesterday.

This article says Warka is not bankrupt and that the CBI is partially to blame because of the reduction in IQD. Haven't we been hearing for some time now that the banks are short on cash because the CBI is collecting it? This could be another explanation as to why we are seeing this happen. And an RV is an easy solution to this problem.

" And an RV is an easy solution to this problem"

Well, all righty then. I like the way you think, Patriotic Mess.

Nice Carrello, I've got to go pick my boy up but I wanted to let you know that JWJW is back!!!!!

Oh, goody. Somebody call Shelley!

Thank you, and good morning, Stryker.

Edited March 9, 2012 by Carrello

[Alexyn1006]

"It is what it is"...we will all find out one way or the other....

Boy it really is something that everyone has Warka dead...I'll be the first to come on here and say I lost my money but you people have it lost before it is really gone....IMO

Stryker, thanks for posting what I was thinking. I MAY have lost my minimum deposit, but to mirror what you've said, Stryker, it ain't over till it's over...When I see an official posting stating that WARKA has gone under, then I'll deal with it, BUT, until then, I'm not going to lend negative energy to the universe by thinking "all's lost". Thanks again, Stryker for your comments, support and what I consider reality...reality comes to pass as ones thoughts..so again, I thank you. If this comes to pass, my sincere regrets to anyone who MAY have lost money.

Edited March 9, 2012 by Alexyn1006

[JustNTime]

Economists warn from the central bank's decision to the Warka Bank

BAGHDAD / With: The decision by the Iraqi Central Bank put Warka Bank of Iraq Investment and Finance under the trusteeship system, wide reactions in the banking sector, that accompanied the crisis of the bank since its inception two years ago, when the bank faces a liquidity crisis resulting from the Iraqi Ministry of Finance to issue instructions to withdraw funds government accounts of private banks immediately, and was on the bank to respond to this procedure.

The watchers estimated the amounts withdrawn from it at 800 billion Iraqi dinars (700 million dollars), augmented by withdrawals of depositors.

They said "We have to leave it a negative impact on the Iraqi banking system, which dealt with the statements and media specialists, in addition to political circles, in abundance in recent times."

She pointed out that the circles on a "crisis of liquidity, the bank would not have been up to the extent to which if the follow-up and monitoring the performance of the bank are available from the agencies responsible for the sector."

The World Bank, through the follow-up of financial conditions in Iraq, issued a report in June of last year, pointing to the importance of strengthening the banking system of government and private sectors.

According to sources in the sector that "the conditions of the Warka Bank, and before Basra International Bank for Investment, which did not happen depositors and shareholders in which any result since placed under the guardianship about two years ago, left a major impact on the banking sector. And was on the Central Bank of Iraq to take measures to address case by the laws in force. "

According to previous reports that the "Warka Bank was entered last year in talks with Standard Chartered Bank British to sell stake in the shares, but the talks have reached a dead end, so it was not before the Central Bank of Iraq but to intervene and take a decision to put the bank under the trusteeship."

The administration sent the bank a letter to the governor of the central reporting that "put the bank under the trusteeship will exacerbate matters, it is not known how will manage the trust bank without providing the liquidity needed, and that the decision will make the debtors of the bank evade payment of their debts and Atelmuson roads all to avoid them."

http://www.mustakbal.net/index.php?option=com_content&view=article&id=16790:2012-03-09-16-53-15&catid=5:2011-07-18-15-03-58&Itemid=12

[Alexyn1006]

http://dinarvets.com/forums/index.php?/topic/108823-parliamentarians-and-experts-calling-for-the-central-banks-decision/page__pid__886095__st__0entry886095

From the Warka and Iraqi Banking thread. Yes, I realize it's two days old. Just something to keep in mind. As with every article that seems to come out of Iraq; there's good news on a topic, then there's "bad" news. I'm hanging my hat on the potential for positive.

Baghdad / Orr News

At the time decided the Iraqi Central Bank to impose guardianship on the Warka Bank, described the members of Parliament in the Economic and Financial Committee and officials in the banking sector this step b (destroyer) of the banking sector, which is the main gate in the process of attracting foreign investment, among bankers that the decision to trust is not justified especially that of Warka, which was founded in 1999 still has the financial strength did not declare bankruptcy.

Central Bank of Iraq admitted in a report released by the Directorate of banking and credit control department inspection, that the reason for the lack of liquidity to the Warka Bank and also the rest of the private banks is the decision of the Ministry of Finance 402 on 15/1/2009 and ordered by all ministries and government departments to withdraw their deposits from private banks, Warka and do it and returned $ 800 billion dinars during the period of one month.

Decision of the Ministry of Finance said he called the deputy governor of the Central Bank of the appearance of Mohammed Saleh b (the straw that broke the back of private banks) and admitted that the decision was taken suddenly and no one knows the reasons that called for it, and turned the private banks of the banks in the true sense to just financial institutions rely solely on market banking. Salih stressed that we our reservation on the disposal of the Ministry of Finance above being bad for the banking system and financial we do not know her reasons for that, and here we had committed a fatal error report of the Inspection Committee also recognized the error seriously committed by the Central Bank and by any Committee is part of the bank, which showed that the central imposition of the death on the Warka close all branches that have not obtained final approvals (50 branches), causing the withdrawal of customer deposits in those branches at once Which impact negatively on liquidity. Banking sources revealed that the Central Bank and after approval to close the 50 branches despite the presence of Movqat principle to open initiative also issued another order is irrelevant where decided to keep the Warka of the stock sale and purchase of foreign currency in the bank, causing a shift customers Warka of banks of other civil, which increased the suspicions of collusion of former officials in the Central with these banks.

Also touched on the central bank to the size of the remaining cash to Warka, amounting to 13% while that must have a minimum of 30%. He has Warka, one of the largest Iraqi banks at all and most modern in terms of the application of electronic banking more than 128 branches and the number of employees exceeded 885 employees, while the number of clients 128 thousand customers among them foreigners, while the preparation of deposits 89 A and deposit.

Central Bank, according to his confession, the Warka is the first dish system ATM follows that arrived prepared in all branches of more of 346 device and the number of cards (MasterCard) 75 thousand and the number of points of sale located in shops, markets and restaurants 1300 device and has a correspondence with more than 40 bank Bank and Arab and foreign.

With a report issued by the Central Bank also revealed that the Warka managed to get the approval of a loan from the Rafidain Bank, with the consent of the Minister of Finance not be disbursed the loan amount up to now because of obstacles placed Rafidain Bank, and here it will be incumbent on the central bank granting Warka loan fast and urged the government banks to Cooperation with Warka granting loans and be patient in demanding payment.

Banking expert Ghazi Kanani between the cause of failure of the banking sector is a government decision that prevented the government departments to deal with it. He Kanani said the government trading is always a paragraph supporting the private sector to gain publicity her, and the truth is that they are always one of the strongest warriors of the sector in all branches of industrial, banking and agriculture. "And wondered Kanani reasons for preventing government departments from dealing with banks eligibility has led to the accumulation of the money supply within the state banks by 94 per cent and most of them government deposits, noting the reluctance of the work of some private banks was caused by corruption of state banks, or government decisions, and this was not reason enough to suppress the private sector, although the latter better off than the government in terms of the preparation of the branches and speed of performance and progress mechanisms, while the government completely the opposite of what we have mentioned.

Official of the Association of private banks confirmed that the Association is currently discussions with the Central Bank to resolve this problem and raise the guardianship of the Warka Bank. The source, who declined to be named, said everyone recognizes the existence of faltering in the work of Warka because of the government's decision to withdraw their deposits, but here was the central bank address the situation which is universally applicable, any damage to the bank, we will find the central banks, countries and the monetary authority and the Ministry of Finance to follow procedures to address the situation.

The source added that the Warka Bank did not declare bankruptcy, according to figures available, our imam Vemogodat Warka cover liabilities and increase it much, but stopped payment on the borrowers and the problems of government decisions caused the lack of cash to Warka.

The source revealed for the Warka had previously, and lend a hand to banks announced Avlasshma in 2005 and two each from the Bank of the pond and the Iraqi Islamic, and the experience of Warka was the rehabilitation of the two banks assisted the CBE board and is currently working of these banks do not have a problem, here are the private banks also help Warka in this ordeal. and also touched on the incident to bankrupt my family bank in 1995 for the one initiated by Islamic banks and central monitoring sum of one billion and a half to help him, and there are many precedents latest of America's government to pump $ 700 billion for banks to end the global financial crisis.

And that the decision to the tutelage of the Central illegal it did not apply the necessary conditions for the guardianship, and must begin with the Central by the other and, unfortunately, give the Central Bank Law of 2004 wide powers of the Bank in its decision-making, and began its sudden and will leave a negative impact on the sector liquidator in general.

CBI reply in the words of his deputy, the appearance of Mohammed Saleh these opinions that his bank is the garrison of the device the Iraqi financial, guardianship here does not mean liquidation but is a form of protection, and any failure of the Bank or stumbling here'd take action and we shall manage the Department Warka until they returned to put it correct. and that there are stages in the lag, for example a liquidity crisis and there is a period drought liquidity, here intervene to protect the bank and also the customers here are not going to resort to liquidate any bank my family, but we will stand beside him. We deal with all banks to that of the same level and we consider a single market in the interest of the financial market of Iraq and development. Member of the parliamentary economic Nora Albjara stressed that many of the government decisions relating to the economic sector, and after careful consideration you will find them contradictory with the orientations of other government.

She said the Economic Commission of the Council of Ministers has recently decided to support private banks and also re-powers of the opening credit bank it for the benefit of foreign investment companies operating in Iraq, and a few days after a decision the tutelage of the right bank my family, we do not know the reasons for this discrepancy in the decisions. She Albjara Many of the decisions are made ​​without reference to its negative effects on investment and attract foreign funds for Iraq, which fear is always of the market is suffering the disorder, and the government created this strike is offset by the laws still suffer Nicosat required by the investor to secure protection for his money, all will limit the process of attraction. and refused Albjara decision of the Central Bank of Iraq's recent imposition of for guardianship and asked him to find a solution more realistic like those in place worldwide during the financial crises, because such decisions will lead to disastrous consequences overlooked the bank is that the citizens of Iraq from the category of customers of banks will be reluctant to deposit their money in banks, and this will lead to a decrease in deposits ie liquidity of these banks and thus will stand latter is unable to carry out its functions and in particular the exploitation of liquidity in the investment projects, and we will reach to sector investment paralyzed after a period of time. revealed that Iraq is one of the few countries that still suffer from the use of cash cache in business dealings and daily, all the world and arrived to the disappearance of the phenomenon of pregnancy cash in the pockets and move them, either in Iraq, we find the concerned authorities to encourage the phenomenon first and create more problems. "Working in Iraq now six banks, Arab and foreign countries are both" Arab Banking Corporation (Bahrain), the Agricultural Bank of Turkey (aprons), Bank Melli Iran, Lebanon's Byblos Bank, Antrcntantl, Bank of Beirut and the Arab countries. "" As made ​​up the financial institution of the Iraqi seven state banks, five of them specialized and cares for the industrial, commercial and housing, while the number of private banks for more than 30 banks, seven of them Islamic , All of which are subject to the law office of Iraqi banks in 2003. " The Iraqi government decided recently to facilitate the approval procedures for issuing letter of credit of appropriations of less than (4) million dollars to support the Iraqi banking private sector and contribute to the revitalization of investment. Executive Director of the Association of private banks Abdulaziz Goldfinch between experience has shown that banks provide to the civil government in terms of staff trained abroad and modern systems and the spread of its branches and the size of its capital and to achieve a good profit and the size of customers to deal with the widening , And openness to the States branches are supported, but the ongoing government harassment against them. And threats on the central bank for the banks need to raise capital to 125 billion dinars / 100 million, and otherwise will be liquidated or merged? Abdul Aziz al-Hassoun that all banks have fulfilled this requirement, but managed five banks to raise capital for more than the figure mentioned much.

Baghdad / Orr News

Read more: http://dinarvets.com/forums/index.php?/topic/108823-parliamentarians-and-experts-calling-for-the-central-banks-decision/#ixzz1odyS95Cn

[lomeygoat]

He said the Commission’s decision Mahma Khalil, “the policy of the Warka Bank banking and economic ineffective in Iraq and a lot of citizens’ deposits were lost because of the political incorrect banking,” noting that “put the bank under the tutelage of the Central Bank is an important step to show the reality of what happens to uncontrolled banking.”

Khalil said that “the Central Bank of Iraq assumes all responsibility in the granting of rights to Iraqi citizens who deposited their money in Warka Bank and lost, but not for oversea investers who have no rights under Iraqi laws.”

[zigmeister]

Here is a snip from Yotas article yesterday.

This article says Warka is not bankrupt and that the CBI is partially to blame because of the reduction in IQD. Haven't we been hearing for some time now that the banks are short on cash because the CBI is collecting it? This could be another explanation as to why we are seeing this happen. And an RV is an easy solution to this problem.

Patriotic mess you made a point here I find very interesting, in that it sheds some light on what the CBI is doing with the dinar it brings in. If part of Warka's issue is lack of dinar, wouldn't that mean the dinar CBI is buying back is not going out the back door?

What about the auctions. All of a sudden paper work had to be submitted to verify who the money was being sold to. Black market, Iran, who knows who the money was being sold to. Perhaps Warka was a big huge player in this.

Good morning, Zig.

You know Carrello it sure seems this is where it all began. It will be interesting to see how this unfolds. I do hope it unfolds well for everyone.

[Shick]

What more proof do we need, when a bear attacks and rips to shred the events shouldn't be questioned when the owner of the scars proclaim the attack. A spade is a spade. Peace! In the Middle East.

[coolbeans]

He said the Commission’s decision Mahma Khalil, “the policy of the Warka Bank banking and economic ineffective in Iraq and a lot of citizens’ deposits were lost because of the political incorrect banking,” noting that “put the bank under the tutelage of the Central Bank is an important step to show the reality of what happens to uncontrolled banking.”

Khalil said that “the Central Bank of Iraq assumes all responsibility in the granting of rights to Iraqi citizens who deposited their money in Warka Bank and lost, but not for oversea investers who have no rights under Iraqi laws.”

"but not for oversea investers who have no rights under Iraqi laws"

[zigmeister]

"but not for oversea investers who have no rights under Iraqi laws"

Ouch. Thats f***** up.

[Stryker365]

He said the Commission’s decision Mahma Khalil, “the policy of the Warka Bank banking and economic ineffective in Iraq and a lot of citizens’ deposits were lost because of the political incorrect banking,” noting that “put the bank under the tutelage of the Central Bank is an important step to show the reality of what happens to uncontrolled banking.”

Khalil said that “the Central Bank of Iraq assumes all responsibility in the granting of rights to Iraqi citizens who deposited their money in Warka Bank and lost, but not for oversea investers who have no rights under Iraqi laws.”

I have taken this part of this statement; not for oversea investers who have no rights under Iraqi laws and search this complete thread and I can't find it anywhere, can

you give us a link so we can all find out where you found it. You have

received +'s for trying to bring us bad news I'd like to see where you get

you're info...

What is this world coming too when a few try to bring

others down...simply amazing...and people give them a reward for doing it....go

figure...

[zigmeister]

I have taken this part of this statement; not for oversea investers who have no rights under Iraqi laws and search this complete thread and I can't find it anywhere, can

you give us a link so we can all find out where you found it. You have

received +'s for trying to bring us bad news I'd like to see where you get

you're info...

What is this world coming too when a few try to bring

others down...simply amazing...and people give them a reward for doing it....go

figure...

I see now who posted this. Thanks for the reminder.

[Stryker365]

I see now who posted this. Thanks for the reminder.

You're welcome zig!

[lomeygoat]

I have taken this part of this statement; not for oversea investers who have no rights under Iraqi laws and search this complete thread and I can't find it anywhere, can

you give us a link so we can all find out where you found it. You have

received +'s for trying to bring us bad news I'd like to see where you get

you're info...

What is this world coming too when a few try to bring

others down...simply amazing...and people give them a reward for doing it....go

figure...

I found it as part of an article on another site, and we cant link to other sites on here, I dont want to get kicked off again.

[Patriotic_mess]

" And an RV is an easy solution to this problem"

Well, all righty then. I like the way you think, Patriotic Mess.

It makes sense, they (supposedly) have billions of Dinar in various accounts, if it goes 1-1 these billions (at current value are worth millions) become billions for them. I can't think of a better way to raise liquidity then that!

[Carrello]

I see now who posted this. Thanks for the reminder.

Ditto, mi amigos.

I found it as part of an article on another site, and we cant link to other sites on here, I dont want to get kicked off again.

But the article had to have a link, no matter where you found it. There has to be a credible source linked to it somewhere. If it not linked on the other site, it has no validity. With this type of conversation, it is irresponsible to bring info that does not have a credible source.

[Stryker365]

Ditto, mi amigos.

But the article had to have a link, no matter where you found it. There has to be a credible source linked to it somewhere. If it not linked on the other site, it has no validity. With this type of conversation, it is irresponsible to bring info that does not have a credible source.

Hey good afternoon Carrello, the day is flying by even tho we have a slow news day. Thanks for pointing this out for us and it's why I ask the question. I think that we are uncovering some glues in what we are looking for, so part of me likes that they have caused this thread to go on, just part of me... Anyway zig has a good point with the lack of dinar theory!

Oh, thanks to Patriotic that is!!!

Edited March 9, 2012 by Stryker365