The Cyprus parliament has prepared a 350-page report on the stock market bubble in 1999-2000 which dragged in thousands of ordinary people and cost many of them their life savings when the bubble collapsed.
Although the report has not yet been made public, the Chairmen of two key Committees revealed yesterday that the report allocates blame for the debacle - and to just about everyone, including the cabinet, the Finance Minister, the Central Bank, the Securities and Exchange Commission, the CSE board, the chairmen of the two largest banks of the island - Popular and Bank of Cyprus, stockbrokers who are especially referred to in the report as the instruments responsible for defrauding investors, and accountants and lawyers involved in registering public companies on the CSE.
The Chairman of the Watchdog Committee Christos Pourgourides and the Chairman of the House Finance Committee, Marcos Kyprianou, added: "There is also a reference to the responsibility of the authorities tasked with prosecuting offences and irregularities concerning the CSE - legal service, the Attorney-general, and the police."
In 1999 the CSE reached a high of 849, and trading averaged CY£50m a day - now the index languishes below 100, and trading scarcely reaches £500,000 a day.
Pourgourides said the report would be released today after it had been given to Attorney-general Alecos Markides and President Glafcos Clerides. He hoped there would be further investigation to determine whether there was any criminal responsibility.
The Parliament has spent countless hours and days since the collapse discussing proposed laws that would resuscitate the market, and looking for someone to blame. But the truth is that human nature is to blame for this bubble, just like all the other stock market bubbles that are a regular feature of economic life; and the market won't recover until people forget what happened and Keynes's 'animal spirits' come to the fore again. It won't be just yet.
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