'We meant to deal with Hapoalim quietly'

BOI Governor Fischer: Knesset has no business interfering in the bank's management issues.

By JPOST.COM STAFF
May 6, 2009 13:21
1 minute read.

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

Bank of Israel Governor Stanley Fischer rejected on Wednesday the Knesset's plan to intervene in the Bank Hapoalim crisis, including some parliamentarians' attempts to prevent him from removing the bank's chairman Dan Dankner and MK Shelly Yacimovich's call to ratify Fischer's move to dismiss him with a Knesset vote. The Bank of Israel contacted Poalim Group chief Shari Arison several weeks ago following a report by the Banks Supervisor Roni Hizkiyahu, which severely criticized Dankner's management of the bank. Hizkiyahu ordered the report after last month's unexpected resignation of Hapoalim CEO Zvi Ziv and the quick appointment - reportedly three minutes later - of his deputy, Zion Keinan, as his replacement. The BoI requested that Arison take steps to remove Dankner, and threatened to intervene if she wouldn't. Speaking at a Knesset's Finance Committee discussion, Fischer said the bank "[really] should not have intervened in this matter now, in the middle of the biggest financial crisis in the history of the country and in light of the repercussions this would have on the Israeli economy." Nevertheless, Fischer added, "we have decided steps must be taken. Regardless, the question of regulating the banks is an issue of the regulator and the regulated body [and not the Knesset]. "We wanted to solve the Hapoalim issue quietly, as is the custom around the world. These things are usually done quietly and the manager's honor is not hurt. It's not the way it happened here. But we're still hoping to reach a compromise," Fischer said. "Our intention is to strengthen the banking system and the management of Bank Hapoalim as well. The fact that this matter became a public issue is an unfortunate outcome."

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS