February 04, 2010

Chapter Bosch criticized for large banks.

From one of the most influential German industrialists and the executive director of Robert Bosch GmbH Franz Ferenbaha voiced criticism of the banks for payment of huge bonuses and the promise to stop all kinds of relationships with financial institutions. The industrialist, who heads the world's largest supplier of automotive components, announced that they intend to act very selectively, and to refrain from entering into any transactions with those banks that believe that their goal is to maximize bonuses. In this case, Mr. Franz added that his very annoying behavior of some banks. Fehrenbach is the first head of global industrial company, which has threatened sanctions, certain banks in connection with their practice of paying bonuses. According to experts, is now the already tense relations between banks and large corporations can only get worse. A number of industrial companies in Europe, among which are HeidelbergCement and Haniel, last year chose to finance most of its operations for the profits from the sale of bonds to investors, rather than through bank lending. Fehrenbach refrained from criticism of some major financial institutions, among which were JPMorgan and HSBC. As the manufacturer, these banks have demonstrated responsibility and prudence. However, he put forward the demand for a far more stringent measures to regulate the banking industry for predovtrascheniya financial crises in the future. "Many major banks not to make any visible changes in the business model or their behavior. We find irresponsible return process of some major financial institutions to their pre-crisis behavior "- quoted Ferenbaha Financial Times. Manufacturer of industrial and automotive equipment, household and consumer products does not depend on bank lending. In the past year through the sale of bonds of the company managed to attract 1.8 billion euros. The total amount of cash the company is estimated at 8 billion euros. Back to news list