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August 28, 2016 / 24 Av, 5776

Posts Tagged ‘Bank Leumi’

Official: Israeli CEO Salary Cap Law May Result in Hundreds Fleeing Banking Industry

Monday, June 20th, 2016

As many as 80 senior employees at Israel’s two largest banks, Hapoalim and Leumi, are threatening to leave shortly, in response to a new law capping the salaries of senior bank officers, Israel Army Radio reported Monday. The report cites a letter from the Supervisor of Banks in Israel Bank Hedva Bar to Justice Minister Ayelet Shaked (Habayit Hayehudi), which warns that as many as 215 senior bank administrators are expected to retire from the two top banks. Bar added that in the rest of Israel’s banks the numbers of departing administrators would be smaller.

So far Bank Hapoalim CEO Zion Keinan and the number two administrator at Bank Leumi Danny Tsiddon have already retired, and according to Bar there are 39 high ranking administrators at Hapolalim and 43 at Leumi who are at a very high risk of retiring.

These figures are particularly worrisome to Bar, who wrote that such mass departure could expose the banks to a real crisis — a managerial breakdown as well as a loss of knowledge and experience. The banks are preparing for such a scenario and have set aside the funds in case all these CEOs would be leaving close to one another and the banks would have to lay out their severance pay all at once — about $70 million.

Meanwhile, the banks have lost their first appeal to the Supreme Court against the salary cap law. And the Knesset, the Finance Ministry and Israel Bank have informed the court that they object to an interim ruling on the senior CEO salary cap law. The banks were asking for the time out to try to figure out whether the salary cap would include the severance and pension benefits the senior bank administrators have accumulated — would those funds also be limited to $650 thousand a year like the capped salaries? The banks fear that if the caps apply retroactively and include severance pay and pensions, a much larger number of bank officials would be seeking to leave before the law goes into effect in October.

The Knesset and the State argued in court that the banks are actually requesting the suspension of a law that otherwise passes constitutional muster in the eyes of the high court — something the court has applied on very rare occasions in the past.

The Knesset and the State also told the court that, assuming the appeal hearings would take roughly three weeks, this should be ample time for the banks to figure out the intricacies of the law and whether or not it applies retroactively.

JNi.Media

Bank Leumi to Cut 10 Percent of Work Force

Wednesday, May 25th, 2016

Bank Leumi plans to cut at least 10 percent of its work force, according to the draft of a five-year plan presented this week to the Bank of Israel.

In the first year of the bank’s reorganization plan, more than a thousand workers are to be laid off, according to Israel Radio.

Approximately 100 employees per year will be laid off in the next four years, most of whom will be those who are ready to retire.

Bank Leumi is one of the largest banks in Israel.

Hana Levi Julian

Israeli Banks Post Strong Figures for 2015

Monday, February 29th, 2016

Israel’s two largest banks posted a strong year for 2015.

Bank Hapoalim noted its annual revenue rose 2.4 percent last year to NIS 14.36 billion. Net profits rose 13.6 percent to NIS 3.08 billion, according to Globes.

Credit to the public rose 5.8 percent to NIS 278.49 billion and deposits from the public rose 8.2 percent to NIS 321.72 billion.

Bank Leumi’s annual non-interest revenue rose to NIS 6.29 billion in 2015 from NIS 5.14 billion in 2014, although net interest revenue fell to NIS 7.11 billion, from NIS 7.36 billion a year earlier.

Net profit jumped to NIS 2.83 billion for 2015, compared with NIS 1.4 billion in 2014.

Credit to the public grew 3.5 percent to NIS 261.4 billion and deposits from the public rose 8.3 percent to NIS 328.7 billion.

Jewish Press News Briefs

Report: Bank Leumi to Pay NIS 1 Billion in Fines to US for Suspected Money Laundering

Sunday, June 8th, 2014

According to a report that appeared in the Israeli Channel 2 news site Mako, Bank Leumi will be required to pay NIS 1 billion in fines to the US for suspected money laundering at its American branches.

The claim is that the US branches may have made transactions on American client’s accounts in the US branches, but not all taxes were paid as required by law.

The bank’s directors held a special meeting yesterday to agree to a compromise agreement with the US government, and pay the fine.

Banks not just in Israel but around the world are also under investigation by the US government for suspected money laundering, in violation of new US laws.

Credit Suisse was recently fined $2.5 Billion USD.

The Mako report states that Mizrachi-Tefachot and Poalim may also have to pay fines.

Jewish Press News Briefs

Score Another Victory For Israel’s Radical Left

Saturday, December 17th, 2011

Bank Leumi, the National Bank of Israel, initiated a campaign, called Two Million Good Reasons, aimed at rewarding Non-Governmental Organizations (NGOs) with funding for their efforts on behalf of the good of society.

One hundred forty NGOs entered the contest, uploading videos to YouTube showcasing their volunteer work in an effort to amass the greatest amount of votes. Based on public support, the bank would distribute two million shekels ($540,000) between the sixty leading organizations.

Upon witnessing the widespread success of Im Tirtzu in the competition, the radical left in Israel vehemently lashed out against Bank Leumi for consenting to the movement’s participation. Members of Peace Now threatened to start a boycott and close their accounts at Bank Leumi unless Im Tirtzu were disqualified.

Despite accusations from radical leftists that Im Tirtzu has political affiliations, their real grievance stems from the fact that they are unable to tolerate views or beliefs that differ from their own. In fact, Bank Leumi initially announced that the mission of Im Tirtzu coincides, completely, with the guidelines of the competition. Moreover, one of the guiding principles of the competition was to promote Zionism. It was only after the bank found itself in the midst of a barrage of negative PR that is issued a statement closing down the contest.

Im Tirtzu prides itself on providing a voice that is diametrically opposed to the anti-Zionist and post-Zionist sentiments prevalent in today’s public discourse. At the same time, it prides itself on remaining apolitical, not affiliated with any political party or group. In fact, Im Tirtzu continues to receive support from across the political spectrum.

As an institution dedicated to the people of Israel and land of Israel, Im Tirtzu spends its time, energy and funding on programming and activities designed to assist, inspire and contribute to all walks of Jewish life. We promote Zionism on university campuses, help new immigrants with their absorption into Israeli society, support students in need of assistance, visit and support Holocaust survivors, work with farmers in the Negev and Galilee, volunteer in Sderot, help minorities acclimate to Israeli society, support soldiers, plant forests and stand firmly against anarchist demonstrations.

The objections to Im Tirtzu’s pro-Israel activities and advocacy come from many of those on the radical left who accept funding from foreign governments and impede, inhibit and undermine the sovereignty and democracy of the country.

Clearly, the thought of Im Tirtzu emerging victorious from this competition, with the support of the public, is something they simply could not bear.

Unfortunately, Bank Leumi succumbed to ugly left-wing threats. Im Tirtzu was in first place as the most popular non-profit organization when the bank decided to stop the project.

Thanks to its unrelenting efforts, Peace Now had its way with Bank Leumi. But this is hardly about one group or one competition. The leaders of Peace Now consider it legitimate to accept funding from foreign countries. By doing so, they undermine Israeli democracy. Not only do they silence the values of Zionism and nationalism, they undermine organizations that seek to improve the lives of sick children, Holocaust survivors, victims of cancer and so many other people in need.

Ronen Shoval is founder and chairman of Im Tirtzu.

Ronen Shoval

Printed from: http://www.jewishpress.com/indepth/analysis/score-another-victory-for-israels-radical-left/2011/12/17/

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