Losses, Damages Compound Due to Failed Bangkok, Thailand, Bank of Commerce.

Byline: Cholada Ingsrisawang

Dec. 7--Even as the Bank of Thailand last week formally concluded that no wrongdoing was committed by regulators in the oversight of the Bangkok Bank of Commerce, the losses and damages arising from the failed institution continue to be paid from the public purse.

The BBC, considered the first true financial casualty of the economic crisis, was formally closed and had its banking licence cancelled just over three years ago.

Yet even now, the account remains open, with the clean-up and asset rehabilitation effort led by state-owned Bangkok Asset Management (BAM).

BAM officials say that the effort to pursue claims over the past few years has been a continual source of frustration. While substandard assets from the bank were transferred to the BAM, guarantees were not, complicating efforts to recover assets. Title for assets pledged as collateral has also encountered problems in the transfer from the bank to the BAM, coupled with difficulties in ensuring proper documentation and fighting borrowers seeking eased terms on their debt obligations.

Overall, officials say that of the 5,560 guarantees and avaled notes worth 3.67 billion baht, a total of 2,901 cases involving 2.9 billion baht remained outstanding as of Oct 31.

Dozens of court cases also remain to be resolved. Of the 171 original cases filed, the BBC was the plaintiff in 88 and the defendant in 83. An additional 19 cases were filed. To date, a total of 69 cases have been cleared and 121 are outstanding.