Comments on: Bank of Moscow exposes Russian regulatory void Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: russkibankir Wed, 06 Jul 2011 01:05:32 +0000 This was not a case of regulatory failure; rather, it is a power move by major Moscow players to seize Luzhkov-linked assets. Bank regulation has in fact been fairly effective nationwide, with about 200 banks closed by authorities for money laundering over the last several years. International Industrial Bank was a case of the regulators overriding close Kremlin ties to seize a bank, more of a success than a lapse in regulation. VTB had to know the Bank of Moscow was holding significant assets that were linked to Luzhkov — it has in effect taken a $10 billion gift from the government in the name of banking irregularities. Don’t mistake asset grabs for bad regulation!