The Knesset Ministerial Legislative Committee announced today that it has rejected a bill opposing tycoon haircuts presented by MK Meir Sheetrit (Kadima).
If the proposal is passed, financiers who does not fulfill their obligation to the public in the set period, would not be eligible to raise additional funding in the capital market. The proposal stipulates that even if a financier in debt reaches a postponement settlement with the public, he or she will still not be eligible to raise additional funding and will still have to wait until the debt is fully repaid.
Even though the bill was rejected, Sheetrit announced that he will bring the bill to a vote in the Knesset on Wednesday. The bill was submitted before the Knesset went into recess in response to requests from financiers such as Ilan Ben-Dov and Yitzhak Tshuva to give a haircut to creditors of companies they controlled.
"The financial system is not serving those it was meant to serve, and the government is not doing anything to rectify the situation," Sheetrit said. "They have a right to know that financiers are raising money from the public, and doing whatever they feel like with it, including paying themselves and their managers huge sums, while taking no responsibility for their losses."
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2011
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