Greek journalist hero Kostas Vaxevanis, who published the Lagarde List of probable tax evaders months ago, is again digging, at risk of his life, on the muddy waters of the deeply corrupt and parasitic Greek banking system.
Yanis Varoufakis publishes today an English translation of his latest research:
In May 2012, I investigated the functioning of Greek banks, with special emphasis on a certain Greek Bank (The Bank henceforth) and its Chairman (The Chairman). I found that The Chairman’s family members were the secret owners of a number of offshore companies that would receive loans from the bank without any real collateral. These loans would then: (a) be written off as unserviceable, or (b) be used to buy office space that would immediately be resold to other parties which would then lease them to The Bank or sell them to The Bank at inflated prices. In addition, other offshore companies were used by The Chairman to borrow substantial amounts from two other Greek banks, again with no collateral, for the purposes of buying shares The Bank (thus helping the bank demonstrate its capacity to draw in private capital). Since then the owner of one of these two other banks has been imprisoned (on different charges) while the second bank involved has played a central role in bringing down the Cypriot banking system (after its merger with one of the island’s now collapsed banks and the transfer of its headquarters from Greece to Cyprus).