Russia's state capture continues. However, this time it's the Kremlin that wants to consume vast sections of the economy. Under a new plan to "recapitalize the banking system," the Russian government intends take a massive stake in the country's largest financial institutions. Sounds familiar.
Now the catch:
FT: "Unlike the US bank bail-out, the Russian scheme would see the government take board seats and have veto rights."
So how much does it cost to place hand-picked men & women on the boards of the country's largest banks? $40 billion, according to S&P. Unfortunetly, the Kremlin doesn't actualy have $40 billion to spend at the moment, so the government will finance the whole thing with debt.
Russia's currency reserves, it seems, have gone the way of democracy and a free press.