Thousands of FNI (National Investments Fund) investors again took the streets yesterday, trying to find out who is to blame for the crisis and desperately asking for their money back.
Those who placed money in FNI marched between CEC (Savings Bank), NBR and the Government headquarters in Bucharest, or between CEC and prefect offices, in the country, hoping to get some support that would help them recoup their money.
The FNI crisis, which is beginning to affect the banking system, occurred because those working in institutions representing the Romanian state within this field, and particularly CNVM (National Securities Commission), have forgotten that they must look after the state’s and population’s interests. They let things explode with the FNI, ignoring the fabulous unit increases, without wondering what generates them and how viable they are. Moreover, CNVM granted FNI derogation from its own regulations on placements, which allowed risky operations with “unlisted” assets.
This is not the first time when those in charge with surveying the financial system let things get worse without intervening in due time. CNVM is also responsible for FMOA-SAFI, while the National Bank and the Finance Ministry can be accused of having allowed CEC to guarantee for FNI’s seriousness and thus be dragged into an unprecedented scandal. NBR is also responsible for everything that has occurred within the entire banking system over the last ten years. Bancorex, Credit Bank, Dacia Felix, Albina, Bankcoop and BIR cases are alive in the memory of all depositors and even though many of them are not in the situation of having lost money, their confidence in the banking system is wavering. So many of the respective cases involve offence, but prosecutors and the police do not seem to exist in this case. Where was the police when Ms. Vlas fled away?
Only now, when the BIR and FNI crisis is about to affect other banks as well, when hundreds of thousands of people are left without money, when the scandal psychologically works its way towards depositors from the banking system, authorities are beginning to worry. Unfortunately, they are tossing this hot issue from one to another, as they always do when things get serious.
Any bank can be affected now by rumours which are spread in good faith or not, and which cast a doubt on its situation. BCR has fallen victim to the panic and lack of confidence and some deponents rushed to claim their money. In Sibiu and other cities, BCR had to cope with withdrawals that were larger than usual. Nicolae Danila, BCR president, maintains that the situation the bank is currently facing was triggered by a skilfully mastered diversion, which is also affecting the population. “BCR is in no trouble. The only trouble is for those clients that let themselves be fooled by rumours launched and maintained in ill faith,” Danila said. The Prime Minister and the Finance minister also stated yesterday that BCR is fine and that people’s money is safe.
Only now, when the situation becomes alarming, involving national security and trust in the financial system, the Government and the Presidency decided to interfere and to ask SRI (Romanian Intelligence Service), the Court and the Interior Ministry to step in and treat FNI case with responsibility. However, it is hard to believe that SRI was not acquainted with the FNI situation and did not submit, inclusively to Palatul Cotroceni, reports on the expansion of this fund and on the persons that were heading it from the shadow.
According to SRI sources, this institution has been submitting reports on FNI for more than a year. The responsibility for the crisis that occurred in the financial system lies with the state’s institutions and with those heading them, and CNVM, the commission that regulates mutual funds market, bears most of the blame. FNI investors believe that, through its silence, NBR became an accomplice in cheating them. “When we invested, we were thinking of Romania as a country ready to join Europe, with an economy that needed investments, we were thinking that we had a state ready to serve the citizen, with the duty to establish laws to be observed not only by us, the regular citizens, but also by you, the governors,” reads the letter investors sent to the Prime Minister.