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US Busting Israeli Banks
Feb 25, 2015 | World Bulletin
In article to CNBC, Sam Antar, former CFO to Crazy Eddie an electrical company in USA described how they used Bank Leumi to help evade taxes, hide assets, and launder money because of their exceptional client services and discretion. -
Bank Leumi Signs 58,548-SF Lease at 350 Madison
Feb 24, 2015 | Commercial Observer
By Sara Pepitone
Bank Leumi USA, the largest subsidiary of Israeli bank The Leumi Group, signed a long-term lease earlier this month for 58,548 square feet at 350 Madison Avenue as The New York Post reported. -
Bank Leumi Issues Profit Warning
Feb 25, 2015 | Globes (English)
By Yossi Nissan
Bank Leumi (TASE: LUMI) has published a profit warning this morning for the fourth quarter of 2014 when it expects to report no profits. -
Hint that Establishing a Commission Pleases the Judge
Feb 24, 2015 | Globes (Hebrew)
By Gur Megiddo
If we judge by the hints of Judge Khaled Kabub at the hearing yesterday for the application to approve a derivative claim in the Leumi affair with the US, it appears that the idea of a commission to be established by Bank Leumi, pleases the Judge. -
Opinion: JCT Shareholders Will not Vote on the Distribution of Leumi Shares
Feb 24, 2015 | Globes (Hebrew)
By Irit Avissar
The distribution of the Jewish Colonial Trust’s shares of Bank Leumi is becoming increasingly more complicated.
Bank Leumi Media Monitoring 02/25/15
English Language Press
Swiss German Language Press - There are no relevant clips to report at this time.
Israeli Press
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Feb 25, 2015 | World Bulletin
In article to CNBC, Sam Antar, former CFO to Crazy Eddie an electrical company in USA described how they used Bank Leumi to help evade taxes, hide assets, and launder money because of their exceptional client services and discretion.
In the article he states that Bank Leumi sent its Israeli employees to New York to assist my family in opening secret numbered accounts in Israel, ferry their skimmed cash overseas, and later helped them launder that cash back into the United States when they needed access to those funds.
Even after the U.S. government cracked down on secret bank accounts in Switzerland, Bank Leumi never stopped – in fact, it went into overdrive to attract new customers, according to a statement by New York regulators after a deal was reached. With Bank Leumi now forced to pay fines, they are required to help the Justice Department investigate other Israeli banks.
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Bank Leumi Signs 58,548-SF Lease at 350 Madison
Feb 24, 2015 | Commercial Observer
By Sara Pepitone
Bank Leumi USA, the largest subsidiary of Israeli bank The Leumi Group, signed a long-term lease earlier this month for 58,548 square feet at 350 Madison Avenue as The New York Post reported. Asking rents in the building range from $60-per-square-foot in the base to $85-per-square-foot in the penthouse.
Occupying the entirety of floors three, four and six, the Israel-based financial services firm will be the building’s largest tenant.
“We’re pleased with the continued leasing momentum at 350 Madison Avenue,” said Alexander Chudnoff, vice chairman, JLL, in a statement. Mr. Chudnoff and Mitchell Konsker, vice chairman, are the exclusive leasing agents for the property, which was 60-percent vacant whenRFR Realty acquired it two years ago.
The campaign to fully lease the 400,000-square-foot building is ongoing, said an RFR official who did not disclose how long the three floor were vacant nor who previous occupied. Last year RFR renovated the two-story lobby, installed art in public spaces, and upgraded amenities such the coffee bar. “The energy and excitement around the repositioning of this historic asset has been outstanding and has been illustrated by the quality of the tenants leasing space within the building,” added Mr. Chudnoff.
“It was truly a collaborative effort in securing this opportunity for the Bank—with absolute principal to principal involvement,” said Mr. Konsker in a statement.
RFR was represented by executive vice president Oliver Katcher and aside from Mr. Chudnoff and Mr. Konsker, senior vice president Dan Turkewitz, senior vice president Diana Biasotti and vice president Matt Polhemus from JLL.
Bank Leumi was represented by vice chairman Brian Gell, senior vice president Joan Meixnerand Brett Shannon senior financial analyst, of CBRE. They were not immediately available for comment.
For additional coverage (English):
http://nypost.com/2015/02/23/manhattan-to-have-9-5-million-square-feet-on-market-by-2018/
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Bank Leumi Issues Profit Warning
Feb 25, 2015 | Globes (English)
By Yossi Nissan
Bank Leumi (TASE: LUMI) has published a profit warning this morning for the fourth quarter of 2014 when it expects to report no profits. This comes just a few days after Israel Discount Bank (TASE: DSCT) also issued a profit warning. Leumi said that profit in all of 2014 should amount to NIS 1.6 billion, down 17% from NIS 1.94 billion in 2013.
Bank Leumi notified the Tel Aviv Stock Exchange (TASE) that the zero profit was due to the NIS 1.4 billion settlement with the US authorities in the affair in which it allegedly helped US customers evade taxes. The bank says that without the amount set aside for that 2014 profits would have been NIS 2.6 billion.RELATED ARTICLESBank Leumi mulls suing Galia Maor and Eitan RaffTough choice for Bank Leumi US customersLeumi got off easy on US tax probe
Bank Leumi also cited a collective agreement signed with the workers committee, for which a reduction of NIS 600-700 million has been set aside, and which will influence pre-tax profits of NIS 400-500 million.
In addition, the Supervisor of Banks instructed the banks to present a reduction in their commitments to employees' rights from the start of 2015, and this reduction will be made at an estimated NIS 450 million gross before tax.
Bank Leumi also reports that the split of theIsrael Corporation (TASE: ILCO) shares that the bank holds less the value of its Kenon Holdings Ltd (TASE:KEN: NYSE: KEN-WI) will influence its financial results by NIS 220 million in the fourth quarter.
The bank also reported that following the instruction of the Supervisor of Banks in January to increase amounts set aside for credit losses on household loans, Leumi expects to set aside NIS 110 million in the quarter. NIS 50 million will also be set aside for credit losses in Romania.
For additional coverage (Hebrew):
http://www.calcalist.co.il/markets/articles/0,7340,L-3653220,00.html
http://www.themarker.com/markets/1.2574424
http://www.bizportal.co.il/capitalmarket/news/article/403634
http://www.ynet.co.il/articles/0,7340,L-4630558,00.html
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Hint that Establishing a Commission Pleases the Judge
Feb 24, 2015 | Globes (Hebrew)
By Gur Megiddo
If we judge by the hints of Judge Khaled Kabub at the hearing yesterday for the application to approve a derivative claim in the Leumi affair with the US, it appears that the idea of a commission to be established by Bank Leumi, pleases the Judge. Bank Leumi wishes to establish a commission to examine the possibilities of realizing the rights of the bank to lay claim against its formal officials.
The Judge said, that not as a protocol in general it is an: “excellent tool” and added a hint that in his opinion regarding the approval of the derivative claim “you (the bank) do not need the approval of the court to establish the commission - it is authorized to you, what happens with the recommendations of the court is another issue”.
In the hearing yesterday, advocate Amit Manor, representing one of the plaintiffs of the derivative claim, argued against the establishment of the commission, stating that the whole point of the commission would be to block the path of the derivative action against the officials and the bank and that it was too late to establish such a commission.
- Manor also claimed conflict of interest of three men likely to be members of the commission Professor Sharon Hannes, Prof Yedidyah stern and Haim Samet.
- Advocate Rely Leshem representing Bank Leumi stated that the establishment of such a commission could be setting a great precedent.
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Opinion: JCT Shareholders Will not Vote on the Distribution of Leumi Shares
Feb 24, 2015 | Globes (Hebrew)
By Irit Avissar
The distribution of the Jewish Colonial Trust’s shares of Bank Leumi is becoming increasingly more complicated. On Tuesday, the board of directors of the JCT issued a notice that they had received an opinion form Professor Assaf Hamdani, which states that the shares cannot be divided without the approval of the courts. In light of this notice it is expected to delay the distribution of Bank Leumi shares as dividends. The value of JCT shares dropped by 5% throughout the day.
To remind the reader, on Sunday 1 March, a general assembly of shareholders is set to convene to decide if to divide the JCT shares of Bank Leumi among the JCT shareholders. JCT holds 5% of Bank Leumi shares which is the major holding of the corporation.
The meeting was called in light of the demands made by some of the shareholders to divide the shares. JCT board has a conflict of interest with this issue, as splitting the shares could result in the dissolution of the JCT (Leumi shares are 90% of the assets).
· JCT is valued at NIS 191 million while the Bank Leumi shares as of the end of the third quarter were valued NIS 991 million. The board of the JCT is stating that under the company’s law it is this prohibited to distribute the shares. They also state that a general assembly is not empowered to make such a decision of distribution not out of net profits.
· It remains to be seen whether the vote next week will be cancelled and the debate moved to the courts or the vote itself will be about appealing to the courts.
· Entropy has recommended that the distribution be approved.
· Entropy analysts state JCT has presented its shareholders with less than 2% return on capital in recent years and that there is a high rate of expenses in relation to expenses, 80% of which are general and administrative expenses.
For additional coverage (Hebrew):
http://www.calcalist.co.il/markets/articles/0,7340,L-3653216,00.html
Bank Leumi Media Monitoring 02/25/15
English Language Press
Swiss German Language Press - There are no relevant clips to report at this time.
Israeli Press
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