CEP Hears Testimony On Financial Situation | EVE Online

CEP Hears Testimony On Financial Situation

2010-03-14 - Von Svarthol

New Caldari - Representatives from the House of Records and Caldari Funds Unlimited testified before a Chief Executive Panel investigatory committee today, painting a bleak picture of future Caldari development in the occupied territories. House of Records analyst Noki Ban led with the most sobering assessment, saying that, "The situation emerging is that many investors were not prepared for the speed and ferocity of the Federation counterattack."

According to Ban's economic models, many corporations may have over-leveraged themselves and did not take adequate precautions before beginning operations in the occupied territories. "If the current trends continue," said Ban, 'we can expect bankruptcies and loan defaults all throughout the economic spectrum. Another credit crisis, similar to what we experienced last year, is not impossible."

Caldari Funds Unlimited provided much of the financing for new corporate ventures in the occupied territories. Its CEO, Jaan Omura, seemed less pessimistic than Ban. "So far, while we have seen a number of defaults by smaller, independent corporations, we have yet to see serious issues with any loans made to megacorporate subsidiaries," she told the committee. "While we have re-evaluated our lending policies in the wake of this counteroffensive, we believe any economic setbacks will be temporary and most investment will be recovered."

Response to the testimony was mixed, though all committee members expressed surprise at the House of Records' dire assessment. Sukuuvestaa and Wiyrkomi called for further investigation, proposing a combined Caldari Business Tribunal and House of Records audit of the disputed territories.