Blitz League has fined the Bank of Atldorf $30 million for failing to adequately supervise the actions of their interest bearing accounts.
The fine was part of a lingering probe into the assets that back the interest bearing accounts the bank offers Blitz teams. These accounts have traditionally paid a 10% return each season, but questions loom as to where the Bank of Altdorf actually pulls this interest from.
The Bank of Altdorf declined to comment for this story.
According to Blitz, the Bank has pilfered long standing client accounts to pay for the exorbitant interest rates paid to Blitz teams. Normally this interest is paid out of the Blitz Team Trust fund that the League established when the league was founded. However, Blitz officials say their fund hasn’t been touched by the Bank and they are unsure where the Bank gets the money to pay the interest rates.
“We’re happy that teams can get such a return,” commented Preach, “[but] when the industry rate is around 2% an account paying five times that seems suspect.”
Blitz officials commented that if the Bank cannot find a way to continue to pay the agreed interest rate, that Blitz will discontinue using their special team accounts.
“We know teams love getting a return for their investment,” said Preach “but the League just can’t sanction getting tied up in legal or ethical battles anymore. If they fail to pay our fine and let us withdraw our teams from their treasuries, we will have to seem further legal course. I doubt it will come to that, but it may be our teams will have to tighten their belts a bit.”
As of this writing, the Bank of Altdorf appears to be honoring the request, but it remains to be seen if that will continue in to the new season.