Auction Scheme News Today

1996 he was up for re-election. this is a new problem for a russian, right? but it turned out his re-election was really something to worry about. the country was kind of a mess, the government was broke. yeltsin was broke in terms of the assets and money he needed to mount his re-election campaign. and by 96, by the time he was running for re-election, there was this ongoing process of the former soviet union selling off what had been government-owned enterprises. they were deep into the proces...

But it turned out his re-election was really something to worry about. the country was kind of a mess, the government was broke. yeltsin was broke in terms of the assets and money he needed to mount his re-election campaign. and by 96, by the time he was running for re-election, there was this ongoing process of the former soviet union selling off what had been government-owned enterprises. they were deep into the process of privatizing what had been a totally state-run economy. but in order to ...

Getting cash for his re-election effort. and the scheme was basically an auction scheme. through this auction scheme, banks would loan the yeltsin government money, cash, and as collateral for the loan, what the government put up was big stakes in big government-run businesses. and then when the government didnt pay back the loans -- the government didnt pay back the loans -- the bank got these big stakes in bank-run businesses, multibillion dollar stakes in companies. and the way it went down i...