Russia's Central Bank Rescues Otkritie After Run on Deposits
- Clients withdrew about $7.4 billion of funds in June and July
- Rescue is first of a bank designated systemically important
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Russia seized control of stricken lender Bank Otkritie FC after the bank lost a quarter of its deposits in recent months and the return of its largest shareholder failed to steady investor nerves.
The rescue -- Russia’s first of a systemically important lender -- will see shareholders’ stake in the bank shrink to a maximum 25 percent and potentially be wiped out, according to a statement on Tuesday. Investors with subordinated debt may also see their paper become worthless.