A banker is a professional who is responsible for managing the financial transactions of clients. Bankers provide financial advice to clients and help them with investments, loans, and other financial services. Bankers should have a good understanding of financial markets, banking regulations, and accounting principles. A few short weeks from now, we will be asked to place our trust in politicians at the ballot box. Sadly, this does not reflect a sudden surge in the popularity of the political parties. It has more to do with the fact that even those with the most sensitive political antennae are struggling to predict the outcome. As a result, people will believe that their vote is more likely to make a difference and, so the logic goes, be more eager to put their cross in the box.
Bankers, like politicians, too often lose sight of their purpose. The crash exposed some ugly truths about the way some big banks and bankers gained an overweening sense of entitlement and, over many years, systematically and cynically abused their position and customers. The covenant of trust between banks and their customers was broken. Hubris had indeed led to nemesis.
EU banks still operating in Russia are squirming to show they're abandoning their ever-more toxic client — but actions speak louder than words. Some banks pulled out of Russia a long time ago, but a lot of people didn't and now they've been caught with their pants down. Austria's top lender, Raiffeisen Bank International (RBI), made €1.8bn in pre-tax profit in Russia last year. Following earlier briefings with German lenders, the US has threatened Austria's top bank with sanctions for doing business in Russia.
RBI is one of eight leading EU banks still in Russia. The others are Dutch lender ING, Germany's Commerzbank and Deutsche Bank, Hungary's OTP Bank, Italy's Intesa Sanpaolo and UniCredit, and Sweden's SEB. The US Treasury warned Austria's Raiffeisen Bank International (RBI) that it risked "being cut off from the US financial system" if it was helping to fund Russia's military.
OTP Bank, which used to be on Ukraine's Sponsors of War list, posted a 125 percent increase in its Russia profit in 2023, pocketing €242m. It has 82 retail branches in Russia and employs 2,018 people there. The US Treasury didn't reply if Morris might come knocking on OTP Bank's door in Budapest in the future.
But US Treasury officials have also briefed German financiers on the new sanctions threat. Commerzbank does corporate banking for mostly German companies active in Russia. It doesn't disclose its Russian profit and employs about 130 people there. ING also does corporate banking in Russia, where its Moscow office employs some 270 people and manages €1.3bn of loans. The Dutch bank said it didn't feel at risk because it "complies with all international sanctions laws including UN, EU, and OFAC".
We trust people who are clear and open with us, with nothing to hide. In a similar vein, we trust people we can rely on, who dependably do what they say they will. We trust people who show they trust and respect us, and those prepared to act against their own self- or short-term interests on our behalf. Lastly, we respond to those whose values we share, who live by those values and don’t contradict them. Some are hoping that if they can keep their head down, the whole thing will blow over and they can have good business in Russia afterwards. Some are afraid of violating any Putin decree because they don’t want personal cases opened up against them. Some are just paralyzed by fear. These are not people who ever imagined, despite all the warnings, that they would be in the middle of this murderous war where they could get killed in the crossfire.
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