Cyprus Bailout | Bank of Cyprus Data Allegedly Had Been Deleted

Cyprus Bailout | Bank of Cyprus Data Allegedly Had Been Deleted

It has quickly become clear that the investigation into the circumstances leading up to the failure of the Laiki Bank and the Bank of Cyprus will not be any easy one. The first problem was that the computers of senior BOC executives have allegedly been wiped clean.  According to Alvarez and Marsal, the firm tasked with investigating why Bank of Cyprus and Laiki sought state assistance:

“Our computer forensic technologists have found that the computers of two employees, (former CEO) Mr. (Andreas) Eliades and (senior manager group treasury and private banking) Christakis Patsalides, have had wiping software loaded, which is not part of the standard software installations at the BoC. Mass deletion of data appears to have been undertaken on the Patsalides computer on October 18, 2012… we had significant gaps in the e-mail data received from BoC for the period 2007 to 2010, a key period for our scope of investigation.”

I wonder if the investigation into highly placed and influential depositors, who magically avoided the bank levy, will also find evidence for insider information equally difficult to find?


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