Bank of Moscow is one of the largest banks in Russia. It has been embroiled in controversy since late September 2010, when the former mayor of Moscow, Yuri Luzhkov, was ousted amid allegations that he had been running the city as a personal fiefdom. The bank’s chief executive, Andrei Borodin, was a close ally of Mr Luzhkov and, immediately after the mayor’s exit, credit rating agency Fitch put the bank on negative watch.
Four months later, in January 2011, Moody’s downgraded the Bank of Moscow from Baa1 to Baa2 and assigned a 'negative' outlook on all long-term ratings. Adding to the uncertainty, another Russian bank, VTB, has been trying for months to wrest control of its long-term rival in a fiercely contested battle with Mr Luzhkov. In February, VTB succeeded in securing a 46.48% stake.