The case of money-laundering affected earnings Israel Discount Bank of New York
The last quarter of 2005 the Bank for the first time in its history, has completed a loss of $ 9 million. In the last quarter of 2004, earnings stood at the bank 10 million dollars. Levada year, the bank, known as I.D.B. New York (Israel Discount Bank of New York), completed with a profit of $ 46 million, which was 8% less than in 2004. Gains on equity was 8.5%. Losses in the last quarter affected the financial statements parent company, Discount Israel. Discount New York, considered the largest Israeli bank operating in the United States in recent years has been a major source of profits Discount Bank. In 2004, for example, its contribution to net profit of Israel Discount Bank amounted to 138 million shekels. Discount New York took place in the classification of 7 major banks of New York State. In recent years, he was considered the most profitable of all Israeli banks. Financials Bank in New York in the last quarter were the result of the investigation that led American authorities for cleaning capital. As a result of the investigation the bank had to pay a fine of 25 million dollars. The auditors and lawyers amounted to $ 15 million. Consequences case of the capital otmyvke affected by the financial performance, primarily on customer deposits. Total bank deposits in the last quarter of 2005 decreased by 21% compared to the third quarter, amounting to five billion dollars. The deposit customers was 1.35 billion dollars; Clearly, some customers feared the consequences of the investigation. At the head of Discount Bank of New York has been, until recently, Are Sher, now located in the "special leave"; It is to replace Deputy Director General Bank Discount Reuven Shpigel. Chairman of the Board of Directors two weeks ago was Are Mintkovich, which last week replaced Gryunshteyn Lan, a representative of the group "Rubin-Shroham", which is the new owner "Diskont."