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NY Times Blasts BoG Governor

The governor of the Bank of Greece, Georgios Provopoulos, is being scrutinized in an article in yesterday's New York Times for "an investigation into whether he abused his position by clearing a banking deal involving his former employer and a business magnate who was subsequently charged with embezzlement and fraud."

The article hinges on a judicial report that states that the BoG governor approved a 71 million euro ($96 million) deal despite warnings from his staff regarding the buyer's finances.

The deal allowed, Lavrentis Lavrentiadis, to enter into a deal with Mr. Provopoulos's former employer, Piraeus Bank, at a vastly inflated price, enabling Lavrentiadis to gain control of Proton Bank. At the time, the deal was beneficial to Piraeus Bank as well.

In a bizarre twist, the new strongman of Proton placed former US ambassador to Athens Daniel Speckhard as CEO.

Although, Lavrentiadis was arrested and charged with a number of financial wrongdoings, with evidence provided by the BoG, the case is far from clear cut, and Mr. Provopoulos has gathered flak in the past for a number of questionable actions, including giving himself raises.