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Russia Finds $2.4 Billion Hole at Lender as Assets Plundered

  • Central bank revokes lender's licence without bailout
  • Regulator accuses lender's management of distorting accounts
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Russia’s central bank pulled the license of Vneshprombank, the country’s 40th biggest bank by assets, after uncovering evidence of asset-stripping and finding a hole in its balance sheet.

Vneshprombank may have to write off assets valued at over 200 billion rubles ($2.4 billion), Deputy Bank of Russia Governor Mikhail Sukhov said Thursday by e-mail. The regulator accused management of plundering assets “over a long period of time” and falsifying accounts, and said rescuing the lender isn’t economically justifiable, according to a website statement.