On July 1st I had posted an articled called The Iraqi currency RV is it for Real?
At times after posting thought provoking and enlightening articles I do get occasional comments from people who are connected some how in this Iraq dinar, ISX arena. All comments are welcomed as I do not censor anyone’s comments except for the removal of obscenities.
It is the reason I went to an approval based program. Your comments will not be posted immediately only after been approved.
A commenter by the name of Bob had a great comment and I thought I would post it here for all you Warka fans. Below is Bob’s comments followed by my comments with help from I must admit from the legal team at the Baby Biltmore.
Interesting that the ISX and ISC have known for a year of Warkas proxy program- yet Warka is allowed to keep trading No articles mention their violations or penalties June Reed has been personally notified of Warkas proxy a month ago and Warka continues to trade
Seems to be hairsplitting that foreign company’s ISX shares held in company name (by proxy) -not in individual name- is any different than the proxy company Warka uses With foreigners being allowed to hold shares in their name Aug 2, one would expect this issue to be resolved prior to that date or not?
American Contractor’s response:
Bob – Where other companies are actively trading in the market Al-Warka is a bank first and as such reports to the Central Bank of Iraq (CBI) for regulatory control first. Al-Warka’s brokerage company is a department of the bank therefore its losses in the market is the banks losses.
Those losses put Al-Warka banks balance sheet below the authorized base value set by the CBI. The proxy company is a corporation which is owned by Al-Warka bank, therefore when the value of the stock purchased by the proxy company dropped by half, that line item of Al-Warka banks budget had a negative impact on the banks liquidity.
Why do you think the CEO of Al-Warka Bank Saad Al-Bunnia, withheld the documents requested by the CBI for their yearly banks audit. That failure to comply caused the CBI to levy a fine against Al-Warka Bank of one million dinar a day for each day not in compliance. That adversarial situation existed for the better part of 16 months.
Please notice was it not a fact that Al-Warka bank did not post its much needed splits until late this year. Of course Al-Warka bank, failed to advise their clients that either of these issues existed. What most people seem to have difficulty grasping is that the Iraqi’s are not the only people who have access to members of the CBI.
Please keep in mind I’m not here to bash Al-Warka Bank, I have better things to do with my time, however, I do owe my own countrymen and woman the benefit of the access I have to the relevant ministries, agencies and departments.
Most people might not be pleased with what I have to say but remember an informed investor is a successful investor.