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Scandals fraud and losses in the financial markets

Scandals fraud and losses in the financial markets

HSBC is the latest bank to be hit by attempted fraud, which Euromoney was first to report.

Abigail Hofman

Abigail Hofman

We’re here to save the world and we don’t need any questions

Wednesday, May 7, 2008

Pension funds write off EUR 170.2mn over stock price corrections.





Pension funds write off EUR 170.2mn over stock price corrections. Local pension funds have written off CZK 4.3bn (EUR 170.2mn) since the start of the year on negative differences in prices of securities (bonds in particular), daily Mlada fronta Dnes informs. The pension funds’ representatives underline that this loss is only accounting and that their actual economic results will not be significantly affected as no fund will sell the said securities at disadvantageous price. Still, in order to overcome the problem, pension funds plan to raise their owners’ equity. The country’s largest domestic bank CSOB has already poured some CZK 200mn in each of its two pension funds - CSOB Penzijni fond Stabilita and PF CSOB Progres & Zemsky penzijni fond. Last year the profit of local pension funds expanded by the moderate 6% y/y to CZK 4.39bn; the value of assets under their management expanded by 19.1% y/y to CZK 162.1bn at end-December.


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