Russian Bank Collapse Shines Light on Risks in Irish Shadows
- Shadow-finance vehicle in Dublin linked to seized Russian bank
- Irish regulators boosting oversight of SPVs amid global effort
Dublin, Ireland.
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Based in a drab office building in Dublin down the road from a pub frequented by Prime Minister Enda Kenny, VPB Funding Ltd. had no employees but one function: selling bonds. In 2013, it issued $225 million of unsecured notes.
The proceeds of that sale were funneled to Vneshprombank Ltd., a Moscow lender whose license was revoked last month when Russian authorities accused management of pilfering its assets and falsifying accounts. VPB’s notes have plunged to pennies on the dollar.