NationStates Jolt Archive

The Ministry of Finance has released a brief statement following today's meeting with leaders from regional banks and the National Bank at Gótpan House.

The MoF has confirmed that the National Bank cannot release the total amount of capital required to save the four Trioplian and two Saviquois regional banks from collapse following the conclusion of merger talks last week. Following last month's Cym250m injection of finance into the First National Savings, and Western Savings, the MoF are confident that a satisfactory figure can be agreed upon before the beginning of the Christmas period.

Six regional banks have been subject to merger talks with the FNS and WS since the downturn in Shambloique economy began to bite last year. A further three merged last month to from BSA-United & Savings, at an estimate cost of Cym300m.

The six banks involved in today's talks are set to lose over 2,000 jobs if talks collapse. Head of Tripoli based TAS-Gaston has called the year 2008 as "the year financial graves were dug with blank gravestones yet to be carved."

The MoF statement calls the talks, to be concluded this week, were "constructive and enthusiastic"

OOC: Open to merger talks?

It would be beneficial for employees and citizens alike to secure the future of the private banking industry in the Shambles, and certainly if assistance on our part additionally helps Tolvan.

If a representative from the Tolvan Government, or the banking industry, wishes to talk about possible merger talks, please get in touch.

TO: Ministry of Finance, The Shambles
FROM: Robert Keegan III, President and CEO, Commonwealth Bank

RE: Merger Oppurtunities

Sir or Madam,

I have read with great distress the reports of instabilities in several of your banking institutions. My own country suffered its own rash of bank failures in the 1980s and I know firsthand of the pain that ensues. As a result I wish convey the interest of myself and the Board of Directors of Commonwealth Bank in potential merger and acquisition oppurtunities in your nation. Commonwealth Bank is the largest bank in Tolvan with T$102 trillion pounds in assets and nearly a million and a half employees. In addition, Commonwealth Bank has turned a profit for 112 consecutive quarters. You can find attached to this communique a copy of our last three years' Annual Reports.

I await your reply.

To: Mr R Keegan III
From: Sebastián Rocque, Ministry of Finance

Mr Keegan,

May I please extend my warm appriciation and thanks for your swift reply and offer of assistance. It is of great comfort to The Shambles that your country is interested in taking some role in ensuring the stability of our economic future within a troubled international context.

As I am sure you can appriciate, the banking system in our country is an important element of our fiscal policy and our economic well being. Our country has benefited from an ability to grow our banking system into a large network of private banks under the watch of the National Bank, and the Financial Ombudsman. The Ministry of Finance maintains an "arm's length" policy in the field of policing the conduct of our private banks.

It appears that our smaller, regional instutions have fallen into unforunate times due to their lending practices, and the connected inability of national banks to guarantee capital can continue to flow between instituions. This has created a problem insofar as the regional banks can no longer guarantee funds to their customers on a basis far greater than the larger national banks.

I offer in this email the possibility of Tolvan assistance in taking a controlling stake in the regional banks of the Savique District, one of the 8 districts of our nation. As a whole package, it will be possible to take controlling stakes in both Savique Regional Investment Bank, and SA-National, for Cym 210 m. We will need to ensure the conversion rate maintains this value. Please note that this will mean that the highly impressive Commonwealth Bank will be responsible for approximately 400,000 mortgages and personal debt, whilst the Ministry of Finance and National Bank will be part-responsible for the saving and investment arms of both banks.

However we are encouraged by your documentation and hope that the swift resolution to this offer will ensure the best deal for all parties

With thanks,

TO: Sebastián Rocque, Ministry of Finance
FROM: Robert Keegan III

Mr. Rocque,

I have forwarded your proposal to Mr. Kenneth Blackwater, Sr. VP for Mergers & Acquistions for Commonwealth Bank, with instructions tha the examine it andcontact your regarding the details.

With Regards,

OOC: The Tolvanic Government proper isn't really involved in this at present, this is simply a private company acting on its own. Commonwealth Bank is the largest bank in Tolvan in terms of market share. Also, I apologize for the short reply but my computer has crashed and I'll hopefully have it back in working order next week.