Lombard unaffected by Cypriot shareholder's problems

Lombard Bank has no exposures to Cypriot banks even though its largest shareholder is the ill-fated Popular Bank of Cyprus, according to CEO Joseph Said. Speaking to timesofmalta.com this morning, Mr Said insisted the Cypriot banking crisis had “absolutely no affect” on Lombard Bank’s operations. “Lombard has no exposure at all to Cypriot banks and Laiki (Popular Bank of Cyprus) is a shareholder like any other shareholder,” he said. Laiki has a 49 per cent stake in Lombard, making it the single largest shareholder. The majority of shares are held by Maltese investors. Under the terms of a bailout deal agreed by EU finance ministers and the International Monetary Fund early this morning, the Cypriot government will have to wind down Laiki, the second-largest bank, with depositors holding more than €100,000 likely to face big losses. Deposits of lower amounts will be transferred to other banks. Mr Said explained that even if Laiki’s shares had to be sold, it will have to seek prior approval from the regulator. “The law states that anybody who owns more than five per cent shareholding has to seek approval from the Malta Financial Services Authority before selling or reducing his...