ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

RBI Sport Supply Grp. Del (MM)

13.56
0.00 (0.00%)
15 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
Sport Supply Grp. Del (MM) NASDAQ:RBI NASDAQ Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 13.56 0 01:00:00

Hungary Passes Law Raising Compensation to Bankrupt Brokerage Clients

15/04/2015 7:44am

Dow Jones News


Sport Supply Grp. Del (MM) (NASDAQ:RBI)
Historical Stock Chart


From May 2019 to May 2024

Click Here for more Sport Supply Grp. Del (MM) Charts.

By Margit Feher

BUDAPEST--Hungarian parliament passed tailor-made legislation Tuesday that increases indemnity payments to clients of bankrupt brokerage Quaestor, despite objections from banks which will be hit by the extra payment.

The legislation was required because "it would incur extreme hardship to the courts should the large number of clients pursue their claims individually," the law reads.

Quaestor clients will each be entitled to up to 30 million forints ($108,111) in compensation by the legislation, an increase from the previous HUF6 million maximum limit. The new amount would cover nearly all of the 32,000 clients' losses, Prime Minister Viktor Orban has said.

Hungary's investment protection fund BeVa will cover the indemnity payments from the proceeds it collects from its members--banks providing investment services, brokerages and investment fund management companies. Banks supply the lion's share of the compensation contributions.

The Banking Association, which represents Hungary's banks and has been in negotiations with the government on the move, has objected to the increase.

"We cannot see the professional reasons for increasing indemnity five-fold," Levente Kovacs, head of the association, said in a statement.

The Banking Association estimates indemnity payments will total about HUF177 billion, Mr. Kovacs said on Info radio.

This equals 0.6% of gross domestic product, Wall Street Journal calculations show, and sharply exceeds the HUF60 billion which the Hungarian government has pledged to lower its special, bank-sector tax next year.

Based on their membership in Hungary's investment protection fund BeVa, the banks hit by the new law include Hungary's largest lender OTP Bank Nyrt. (OTP.BU), K&H Bank Nyrt., owned by KBC Group NV (KBC.BT) of Belgium, the local arms of Austria-based banks Erste Bank AG (EBS.VI) and Raiffeisen International AG (RBI.VI) UniCredit SpA (UCG.MI) and Intesa Sanpaolo SpA (ISP.MI) of Italy.

Locally-owned brokerage Quaestor became bankrupt in March when it defaulted on its corporate bonds issued without permit.

Write to Margit Feher at margit.feher@wsj.com; Twitter: @margitfeher

1 Year Sport Supply Grp. Del (MM) Chart

1 Year Sport Supply Grp. Del (MM) Chart

1 Month Sport Supply Grp. Del (MM) Chart

1 Month Sport Supply Grp. Del (MM) Chart

Your Recent History

Delayed Upgrade Clock